10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q

x  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2015

or

o  Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from              to             

Commission File Number 001-11339

PROTECTIVE LIFE CORPORATION

(Exact name of registrant as specified in its charter)

DELAWARE	95-2492236
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification Number)

2801 HIGHWAY 280 SOUTH

BIRMINGHAM, ALABAMA 35223

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code (205) 268-1000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller reporting company. See definition of “accelerated filer” and “small reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer x	Accelerated Filer o
Non-accelerated filer o	Smaller Reporting Company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x

Number of shares of Common Stock, $0.01 Par Value, outstanding as of  July 23, 2015:  1,000

PROTECTIVE LIFE CORPORATION

QUARTERLY REPORT ON FORM 10-Q

FOR QUARTERLY PERIOD ENDED JUNE 30, 2015

TABLE OF CONTENTS

PART I

		Page
Item 1.	Financial Statements (unaudited):
	Consolidated Condensed Statements of Income For The Three Months Ended June 30, 2015 (Successor Company), the Period of February 1, 2015 to June 30, 2015 (Successor Company), the Period of January 1, 2015 to January 31, 2015 (Predecessor Company), and For The Three and Six Months Ended June 30, 2014 (Predecessor Company)	3
	Consolidated Condensed Statements of Comprehensive Income (Loss) For The Three Months Ended June 30, 2015 (Successor Company), the Period of February 1, 2015 to June 30, 2015 (Successor Company), the Period of January 1, 2015 to January 31, 2015 (Predecessor Company), and For The Three and Six Months Ended June 30, 2014 (Predecessor Company)	4
	Consolidated Condensed Balance Sheets as of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company)	5
	Consolidated Condensed Statement of Shareowner’s Equity for the Period of February 1, 2015 to June 30, 2015 (Successor Company) and for the Period of January 1, 2015 to January 31, 2015 (Predecessor Company)	7
	Consolidated Condensed Statements of Cash Flows for the Period of February 1, 2015 to June 30, 2015 (Successor Company), the Period of January 1, 2015 to January 31, 2015 (Predecessor Company), and For The Six Months Ended June 30, 2014	8
	Notes to Consolidated Condensed Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	77
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	150
Item 4.	Controls and Procedures	150
PART II
Item 1.	Legal Proceedings	151
Item 1A.	Risk Factors	152
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	160
Item 6.	Exhibits	161
	Signature	162

2

PROTECTIVE LIFE CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Unaudited)

	Successor Company						Predecessor Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands, Except Per Share Amounts)
Revenues
Premiums and policy fees	$	832,088		$	1,341,096		$	261,866		$	851,802		$	1,667,698
Reinsurance ceded	(345,244		)	(486,645		)	(89,956		)	(342,968		)	(670,681		)
Net of reinsurance ceded	486,844			854,451			171,910			508,834			997,017
Net investment income	436,291			725,163			175,180			550,816			1,088,979
Realized investment gains (losses):
Derivative financial instruments	94,603			128,244			(123,274		)	(89,926		)	(195,276		)
All other investments	(102,337		)	(137,393		)	81,153			80,148			152,262
Other-than-temporary impairment losses	(13,395		)	(13,395		)	(636		)	(461		)	(884		)
Portion recognized in other comprehensive income (before taxes)	7,661			7,661			155			(999		)	(2,167		)
Net impairment losses recognized in earnings	(5,734		)	(5,734		)	(481		)	(1,460		)	(3,051		)
Other income	109,094			176,357			36,421			106,931			205,970
Total revenues	1,018,761			1,741,088			340,909			1,155,343			2,245,901
Benefits and expenses
Benefits and settlement expenses, net of reinsurance ceded: (2015 Successor - $303,743 and $420,951); (2015 Predecessor - $87,674; 2014 Predecessor - three months: $328,555; six months: $633,387)	694,606			1,180,905			267,287			747,816			1,476,335
Amortization of deferred policy acquisition costs and value of business acquired	40,094			67,991			4,072			51,531			107,113
Other operating expenses, net of reinsurance ceded: (2015 Successor - $49,741 and $84,777) (2015 Predecessor - $35,036; 2014 Predecessor - three months: $46,545; six months: $90,311)	187,151			302,455			68,368			193,786			375,038
Total benefits and expenses	921,851			1,551,351			339,727			993,133			1,958,486
Income before income tax	96,910			189,737			1,182			162,210			287,415
Income tax expense (benefit)	33,070			63,036			(327		)	54,233			95,799
Net income	$	63,840		$	126,701		$	1,509		$	107,977		$	191,616
Net income - basic							$	0.02		$	1.35		$	2.40
Net income - diluted							$	0.02		$	1.33		$	2.36
Cash dividends paid per share							$	—		$	0.24		$	0.44
Average shares outstanding - basic							80,452,848			79,979,153			79,794,831
Average shares outstanding - diluted							81,759,287			81,446,277			81,160,800

See Notes to Consolidated Condensed Financial Statements

3

PROTECTIVE LIFE CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Successor Company						Predecessor Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Net income	$	63,840		$	126,701		$	1,509		$	107,977		$	191,616
Other comprehensive income (loss):
Change in net unrealized gains (losses) on investments, net of income tax: (2015 Successor - $(324,302) and $(481,657)); (2015 Predecessor - $259,738; 2014 Predecessor - three months: $216,476; six months: $476,065)	(602,274		)	(894,507		)	482,370			402,027			884,120
Reclassification adjustment for investment amounts included in net income, net of income tax: (2015 Successor - $831 and $700); (2015 Predecessor - $(2,244); 2014 Predecessor - three months: $(6,558); six months: $(8,581))	1,543			1,301			(4,166		)	(12,180		)	(15,936		)
Change in net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, net of income tax: (2015 Successor - $(2,458) and $(2,458)); (2015 Predecessor - $(131); 2014 Predecessor - three months: $(571); six months: $1,858)	(4,566		)	(4,566		)	(243		)	(1,061		)	3,450
Change in accumulated (loss) gain - derivatives, net of income tax: (2015 Successor - $12 and $0); (2015 Predecessor - $5; 2014 Predecessor - three months: $(325); six months: $(9))	23			—			9			(604		)	(17		)
Reclassification adjustment for derivative amounts included in net income, net of income tax: (2015 Successor - $(31) and $0); (2015 Predecessor - $13; 2014 Predecessor - three months: $214; six months: $449)	(59		)	—			23			399			835
Change in postretirement benefits liability adjustment, net of income tax: (2015 Successor - $0 and $0); (2015 Predecessor - $(6,475); 2014 Predecessor - three months: $1,896; six months: $1,264)	—			—			(12,025		)	3,520			2,347
Total other comprehensive income (loss)	(605,333		)	(897,772		)	465,968			392,101			874,799
Total comprehensive income (loss)	$	(541,493	)	$	(771,071	)	$	467,477		$	500,078		$	1,066,415

See Notes to Consolidated Condensed Financial Statements

4

PROTECTIVE LIFE CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS

(Unaudited)

	Successor		Predecessor
	Company		Company
	As of		As of
	June 30, 2015		December 31, 2014
	(Dollars In Thousands)		(Dollars In Thousands)
Assets
Fixed maturities, at fair value (amortized cost: 2015 Successor - $37,890,827; 2014 Predecessor - $33,738,242)	$	35,762,609	$	36,775,989
Fixed maturities, at amortized cost (fair value: 2015 Successor - $489,950; 2014 Predecessor - $485,422)	565,334		435,000
Equity securities, at fair value (cost: 2015 Successor - $734,053; 2014 Predecessor - $778,744)	722,457		803,230
Mortgage loans (related to securitizations: 2015 Successor - $423,702; 2014 Predecessor - $455,250)	5,677,667		5,133,780
Investment real estate, net of accumulated depreciation (2015 Successor - $52; 2014 Predecessor - $246)	7,404		5,918
Policy loans	1,719,864		1,758,237
Other long-term investments	700,983		514,639
Short-term investments	204,667		250,645
Total investments	45,360,985		45,677,438
Cash	568,776		379,411
Accrued investment income	472,584		474,522
Accounts and premiums receivable	70,894		84,458
Reinsurance receivables	5,613,895		6,106,113
Deferred policy acquisition costs and value of business acquired	1,393,926		3,294,570
Goodwill	735,712		102,365
Other intangibles, net of accumulated amortization (2015 Successor - $17,212)	665,787		—
Property and equipment, net of accumulated depreciation (2015 Successor - $3,658; 2014 Predecessor - $118,487)	103,098		52,853
Other assets	146,300		316,207
Assets related to separate accounts
Variable annuity	13,313,000		13,157,429
Variable universal life	859,114		834,940
Total assets	$	69,304,071	$	70,480,306

See Notes to Consolidated Condensed Financial Statements

5

PROTECTIVE LIFE CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS

(continued)

(Unaudited)

	Successor			Predecessor
	Company			Company
	As of			As of
	June 30, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Liabilities
Future policy benefits and claims	$	29,721,028		$	29,944,890
Unearned premiums	714,115			1,574,077
Total policy liabilities and accruals	30,435,143			31,518,967
Stable value product account balances	1,861,280			1,959,488
Annuity account balances	10,792,560			10,950,729
Other policyholders’ funds	1,121,465			1,430,325
Other liabilities	1,595,091			1,621,168
Income tax payable	101,583			23,901
Deferred income taxes	1,068,172			1,545,478
Non-recourse funding obligations	656,299			582,404
Repurchase program borrowings	602,213			50,000
Debt	1,662,739			1,300,000
Subordinated debt securities	452,424			540,593
Liabilities related to separate accounts
Variable annuity	13,313,000			13,157,429
Variable universal life	859,114			834,940
Total liabilities	64,521,083			65,515,422
Commitments and contingencies - Note 10
Shareowner’s equity
Preferred Stock; (Predecessor) $1 par value, shares authorized: 4,000,000; Issued: None
Common Stock, 2015 (Successor) and 2014 (Predecessor) - $.01 par value and $.50 par value; shares authorized: 5,000 and 160,000,000; shares issued: 1,000 and 88,776,960, respectively	—			44,388
Additional paid-in-capital	5,554,059			606,125
Treasury stock, at cost (2014 Predecessor - 9,435,255 shares)	—			(185,705		)
Retained earnings	126,701			3,082,000
Accumulated other comprehensive income (loss):
Net unrealized gains (losses) on investments, net of income tax: (2015 Successor - $(480,957); 2014 Predecessor - $796,960)	(893,206		)	1,480,068
Net unrealized (losses) gains relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, net of income tax: (2015 Successor - $(2,458); 2014 Predecessor - $2,208)	(4,566		)	4,101
Accumulated loss - derivatives, net of income tax: (2015 Successor - $0; 2014 Predecessor - $(45))	—			(82		)
Postretirement benefits liability adjustment, net of income tax: (2015 Successor - $0; 2014 Predecessor - $(35,545))	—			(66,011		)
Total shareowner’s equity	4,782,988			4,964,884
Total liabilities and shareowner’s equity	$	69,304,071		$	70,480,306

See Notes to Consolidated Condensed Financial Statements

6

PROTECTIVE LIFE CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF SHAREOWNER’S EQUITY

(Unaudited)

										Accumulated
			Additional							Other		Total
	Common		Paid-In-		Treasury			Retained		Comprehensive		Shareowner’s
	Stock		Capital		Stock			Earnings		Income		equity
	(Dollars In Thousands)
Predecessor Company
Balance, December 31, 2014	$	44,388	$	606,125	$	(185,705	)	$	3,082,000	$	1,418,076	$	4,964,884
Net income for the period of January 1, 2015 to January 31, 2015								1,509				1,509
Other comprehensive income										465,968		465,968
Comprehensive income for the period of January 1, 2015 to January 31, 2015												467,477
Stock-based compensation			1,550									1,550
Balance, January 31, 2015	$	44,388	$	607,675	$	(185,705	)	$	3,083,509	$	1,884,044	$	5,433,911

									Accumulated
			Additional						Other			Total
	Common		Paid-In-		Treasury		Retained		Comprehensive			Shareowner’s
	Stock		Capital		Stock		Earnings		Income (Loss)			equity
	(Dollars In Thousands)
Successor Company
Balance, February 1, 2015	$	—	$	5,554,059	$	—	$	—	$	—		$	5,554,059
Net income for the period of February 1, 2015 to June 30, 2015							126,701					126,701
Other comprehensive loss									(897,772		)	(897,772		)
Comprehensive loss for the period of February 1, 2015 to June 30, 2015												(771,071		)
Balance, June 30, 2015	$	—	$	5,554,059	$	—	$	126,701	$	(897,772	)	$	4,782,988

See Notes to Consolidated Condensed Financial Statements

7

PROTECTIVE LIFE CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015			For The Six
	to			to			Months Ended
	June 30, 2015			January 31, 2015			June 30, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Cash flows from operating activities
Net income	$	126,701		$	1,509		$	191,616
Adjustments to reconcile net income to net cash provided by operating activities:
Realized investment losses (gains)	14,883			42,602			46,065
Amortization of DAC and VOBA	67,991			4,072			107,113
Capitalization of deferred policy acquisition costs	(130,347		)	(22,489		)	(136,561		)
Depreciation and amortization expense	20,922			820			3,757
Deferred income tax	16,056			30,791			(30,728		)
Accrued income tax	117,041			(32,803		)	91,410
Interest credited to universal life and investment products	422,093			79,088			422,306
Policy fees assessed on universal life and investment products	(491,769		)	(90,288		)	(481,402		)
Change in reinsurance receivables	110,125			(85,081		)	42,403
Change in accrued investment income and other receivables	15,831			(5,789		)	(16,821		)
Change in policy liabilities and other policyholders’ funds of traditional life and health products	(153,073		)	176,980			83,825
Trading securities:
Maturities and principal reductions of investments	40,104			17,946			47,888
Sale of investments	78,302			26,422			112,473
Cost of investments acquired	(135,770		)	(27,289		)	(75,742		)
Other net change in trading securities	83,770			(26,901		)	(52,325		)
Amortization of premiums and accretion of discounts on investments and mortgage loans	177,658			12,930			55,985
Change in other liabilities	(228,189		)	238,592			104,961
Other income - gains on repurchase of non-recourse funding obligations	—			—			(4,587		)
Other, net	(27,763		)	(149,889		)	(88,146		)
Net cash provided by operating activities	124,566			191,223			423,490
Cash flows from investing activities
Maturities and principal reductions of investments, available-for-sale	202,371			59,028			656,492
Sale of investments, available-for-sale	2,051,567			191,062			768,785
Cost of investments acquired, available-for-sale	(2,593,859		)	(149,887		)	(2,071,692		)
Change in investments, held-to-maturity	(35,000		)	—			(35,000		)
Mortgage loans:
New lendings	(637,908		)	(100,530		)	(351,505		)
Repayments	510,580			45,741			547,698
Change in investment real estate, net	52			7			1,256
Change in policy loans, net	32,008			6,365			37,365
Change in other long-term investments, net	(154,537		)	(25,339		)	(73,387		)
Change in short-term investments, net	34,946			(40,314		)	(35,799		)
Net unsettled security transactions	(46,266		)	37,510			47,933
Purchase of property and equipment	(2,444		)	(649		)	(4,776		)
Payments for business acquisitions	—			—			(906		)
Net cash (used in) provided by investing activities	(638,490		)	22,994			(513,536		)
Cash flows from financing activities
Borrowings under line of credit arrangements and debt	155,000			—			90,000
Principal payments on line of credit arrangement and debt	(119,399		)	(60,000		)	(230,000		)
Issuance (repayment) of non-recourse funding obligations	35,000			—			16,630
Repurchase program borrowings	552,213			—			70,490
Dividends to shareowners	—			—			(34,649		)
Investment product deposits and change in universal life deposits	1,222,581			169,233			1,304,549
Investment product withdrawals	(1,225,576		)	(240,147		)	(1,232,428		)
Other financing activities, net	171			(4		)	—
Net cash provided by (used in) financing activities	619,990			(130,918		)	(15,408		)
Change in cash	106,066			83,299			(105,454		)
Cash at beginning of period	462,710			379,411			466,542
Cash at end of period	$	568,776		$	462,710		$	361,088

See Notes to Consolidated Condensed Financial Statements

8

PROTECTIVE LIFE CORPORATION

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

(Unaudited)

1.BASIS OF PRESENTATION

Basis of Presentation

On February 1, 2015, Protective Life Corporation (the “Company”) became a wholly owned subsidiary of The Dai-ichi Life Insurance Company, Limited, a kabushiki kaisha organized under the laws of Japan (“Dai-ichi Life”), when DL Investment (Delaware), Inc. a wholly owned subsidiary of Dai-ichi Life, merged with and into the Company (the “Merger”). Prior to February 1, 2015, and for the periods reported as “predecessor”, the Company’s stock was publicly traded on the New York Stock Exchange and subsequent to the Merger date, the Company remains as an SEC registrant within the United States. The Company is a holding company with subsidiaries that provide financial services through the production, distribution, and administration of insurance and investment products. The Company markets individual life insurance, credit life and disability insurance, guaranteed investment contracts, guaranteed funding agreements, fixed and variable annuities, and extended service contracts throughout the United States. The Company also maintains a separate segment devoted to the acquisition of insurance policies from other companies. Founded in 1907, Protective Life Insurance Company (“PLICO”) is the Company’s largest operating subsidiary.

The Merger was accounted for by the Company under the acquisition method of accounting under ASC Topic 805 Business Combinations. In accordance with ASC Topic 805-20-30, all identifiable assets acquired and liabilities assumed were measured at fair value as of the acquisition date. The Company elected to apply “pushdown” accounting by applying the guidance allowed by ASC Topic 805, Business Combinations, including the initial recognition of most of the Company’s assets and liabilities at fair value as of the acquisition date, and similarly recognizing goodwill calculated based on the terms of the transaction and the fair value of the new basis of net assets of the Company. The new basis of accounting will be the basis of the accounting records in the preparation of future financial statements and related disclosures after the Merger date. Goodwill of $735.7 million was recorded as of the acquisition date which represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in the Merger, and reflects the Company’s assembled workforce, future growth potential and other sources of value not associated with identifiable assets.

These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such accounting principles differ from statutory reporting practices used by insurance companies in reporting to state regulatory authorities. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements reflect all adjustments (consisting only of normal recurring items) necessary for a fair statement of the results for the interim periods presented. Operating results for the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company) are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2015 (Successor Company). The year-end consolidated condensed financial data included herein was derived from audited financial statements but does not include all disclosures required by GAAP within this report. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (Predecessor Company).

The operating results of companies in the insurance industry have historically been subject to significant fluctuations due to changing competition, economic conditions, interest rates, investment performance, insurance ratings, claims, persistency, and other factors.

Reclassifications

Certain reclassifications have been made in the previously reported financial statements and accompanying notes to make the prior year amounts comparable to those of the current year. Such reclassifications had no effect on previously reported net income or shareowner’s equity.

During the second quarter of 2015, the Company recorded an adjustment related to certain shadow adjustments to the Company’s unrealized investment losses and future policy benefits and claims liability for the previous interim period (period February 1, 2015 to March 31, 2015). Had this adjustment been recorded by the Company prior to March 31, 2015, the recording of this amount within that interim period would have resulted in an increase to other comprehensive income of $66.7 million, net of income taxes, with offsetting adjustments to the future policy benefits and claims liability and deferred income tax liability on the interim balance sheet. The Company concluded that this adjustment was not determined to be quantitatively or qualitatively material to the interim periods and that the previously issued interim financial statements as of and for the period ended March 31, 2015 were not materially affected. This adjustment was recorded by the Company within the presented interim consolidated condensed financial statements for the quarter ended June 30, 2015.

9

Entities Included

The consolidated condensed financial statements for the predecessor and successor periods presented in this report include the accounts of Protective Life Corporation and subsidiaries and its affiliate companies in which the Company holds a majority voting or economic interest. Intercompany balances and transactions have been eliminated.

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Significant Accounting Policies

For a full description of significant accounting policies, see Note 2 to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (Predecessor Company). Other than the accounting matters resulting from the application of pushdown accounting in connection with ASC Topic 805, the Company did not make significant changes to accounting policies during the period of February 1, 2015 to June 30, 2015 (Successor Company) except as noted below.

Intangible Assets

Intangible assets with definite lives are amortized over the estimated useful life of the asset. Amortizable intangible assets primarily consist of distribution relationships, trade names, and technology. Intangible assets with indefinite lives, primarily insurance licenses, are not amortized.

Value of Business Acquired

In conjunction with the Merger, a portion of the purchase price was allocated to the right to receive future gross profits from cash flows and earnings of the Company’s insurance policies and investment contracts as of the date of the Merger. This intangible asset, called value of business acquired (“VOBA”), is based on the actuarially estimated present value of future cash flows from the Company’s insurance policies and investment contracts in-force on the date of the Merger. The estimated present value of future cash flows used in the calculation of the VOBA is based on certain assumptions, including mortality, persistency, expenses, and interest rates that the Company expects to experience in future years. The Company amortizes VOBA in proportion to gross premiums for traditional life products, or estimated gross margins (“EGMs”) for participating traditional life products within the MONY block. For interest sensitive products, the Company uses various amortization bases including expected gross profits (“EGPs”), revenues, or insurance in-force.

Goodwill

Goodwill of $735.7 million was recognized in conjunction with the Merger as the excess of the purchase considerations over the fair value of identifiable assets acquired and liabilities assumed. The balance recognized as goodwill is not amortized, but is reviewed for impairment on an annual basis, or more frequently as events or circumstances may warrant, including those circumstances which would more likely than not reduce the fair value of the Company’s reporting units below its carrying amount.

Property and Equipment

In conjunction with the Merger, property and equipment was recorded at fair value and will be depreciated from this basis in future periods based on the respective estimated useful lives. Real estate assets were recorded at appraised values as of the acquisition date. The Company has estimated the remaining useful life of the home office building to be 25 years. Land is not depreciated.

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The carrying amounts of the Company’s fixed assets are as follows

	Successor		Predecessor
	Company		Company
	As of		As of
	June 30, 2015		December 31, 2014
	(Dollars In Thousands)		(Dollars In Thousands)
Home office building	$	65,127	$	75,109
Land	24,920		—
Data processing equipment	11,815		40,919
Other, principally furniture and equipment	4,894		55,312
	106,756		171,340
Accumulated depreciation	3,658		118,487
Total property and equipment	$	103,098	$	52,853

Guaranteed Minimum Withdrawal Benefits

The Company also establishes reserves for guaranteed minimum withdrawal benefits (“GMWB”) on its variable annuity (“VA”) products. The GMWB is valued in accordance with FASB guidance under the ASC Derivatives and Hedging Topic which utilizes the valuation technique prescribed by the ASC Fair Value Measurements and Disclosures Topic, which requires the embedded derivative to be recorded at fair value using current implied volatilities for the equity indices. The fair value of the GMWB is impacted by equity market conditions and can result in the GMWB embedded derivative being in an overall net asset or net liability position.  In times of favorable equity market conditions the likelihood and severity of claims is reduced and expected fee income increases.  Since claims are generally expected later than fees these favorable equity market conditions can result in the present value of fees being greater than the present value of claims which results in a net GMWB embedded derivative asset.  In times of unfavorable equity market conditions the likelihood and severity of claims is increased and expected fee income decreases and can result in the present value of claims exceeding the present value of fees resulting in a net GMWB embedded derivative liability. The methods used to estimate the embedded derivatives employ assumptions about mortality, lapses, policyholder behavior, equity market returns, interest rates, and market volatility. The Company assumes age-based mortality from the National Association of Insurance Commissioners 1994 Variable Annuity MGDB Mortality Table for company experience. Differences between the actual experience and the assumptions used result in variances in profit and could result in losses. In conjunction with the merger the Company updated the fair value of the GMWB reserves to reflect current assumptions as of February 1, 2015 (Successor Company). As a result of the application of ASC Topic 805, the Company reset the hedge premium rates utilized in the valuation for all policies to be equal to the present value of future claims with the reset hedge premium rates being capped at the actual charges to the policyholder. This update resulted in a decrease in the net liability of approximately $266.1 million on the Merger date. As of June 30, 2015 (Successor Company), the net GMWB asset held was approximately $59.9 million.

Policyholder Liabilities

Insurance Liabilities and Reserves

In conjunction with the Merger and in accordance with ASC 805, insurance liabilities and reserves are recorded at fair value and the underlying contracts are considered to be new contracts, for measurement and reporting purposes as of the acquisition date. Estimating liabilities for future policy benefits on life and health insurance products requires the use of assumptions relative to future investment yields, mortality, morbidity, persistency, and other assumptions based on the Company’s historical experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviation. Determining liabilities for the Company’s property and casualty insurance products also requires the use of assumptions, including the projected levels of used vehicle prices, the frequency and severity of claims, and the effectiveness of internal processes designed to reduce the level of claims. The Company’s results depend significantly upon the extent to which its actual claims experience is consistent with the assumptions the Company used in determining its reserves and pricing its products. The Company’s reserve assumptions and estimates require significant judgment and, therefore, are inherently uncertain. The Company cannot determine with precision the ultimate amounts that it will pay for actual claims or the timing of those payments. As such, at the acquisition date, the Company updated the assumptions described above to reflect current best estimates

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and reserves were calculated in accordance with the methodology described below. VOBA was recorded to reflect the difference between the fair value of the contractual insurance liability and the reserve established.

Traditional Life, Health, and Credit Insurance Products

Traditional life insurance products consist principally of those products with fixed and guaranteed premiums and benefits, and they include whole life insurance policies, term and term-like life insurance policies, limited payment life insurance policies, and certain annuities with life contingencies. In accordance with ASC 805, the liabilities for future policy benefits on traditional life insurance products, when combined with the associated VOBA, have been recorded at fair value. These values were computed using assumptions that includes interest rates, mortality, lapse rates, expenses estimates, and other assumptions based on the Company’s experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviation. The liability for future policy benefits and claims on traditional life, health, and credit insurance products includes estimated unpaid claims that have been reported to us and claims incurred but not yet reported.

Universal Life and Investment Products

Universal life and investment products include universal life insurance, guaranteed investment contracts, guaranteed funding agreements, deferred annuities, and annuities without life contingencies. Benefit reserves for universal life and investment products represent policy account balances before applicable surrender charges plus certain deferred policy initiation fees that are recognized in income over the term of the policies. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policy account balances and interest credited to policy account balances.

The Company establishes liabilities for fixed indexed annuity (“FIA”) products. These products are deferred fixed annuities with a guaranteed minimum interest rate plus a contingent return based on equity market performance. The FIA product is considered a hybrid financial instrument under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”) Topic 815—Derivatives and Hedging which allows the Company to make the election to value the liabilities of these FIA products at fair value. This election was made for the FIA products issued prior to 2010 as the policies were issued. These products are no longer being marketed. The future changes in the fair value of the liability for these FIA products will be recorded in Benefit and settlement expenses with the liability being recorded in Annuity account balances. For more information regarding the determination of fair value of annuity account balances please refer to Note 15, Fair Value of Financial Instruments. Premiums and policy fees for these FIA products consist of fees that have been assessed against the policy account balances for surrenders. Such fees are recognized when assessed and earned.

The Company currently markets a deferred fixed annuity with a guaranteed minimum interest rate plus a contingent return based on equity market performance and the products are considered hybrid financial instruments under the FASB’s ASC Topic 815—Derivatives and Hedging. The Company did not elect to value these FIA products at fair value prior to the Merger date.  As a result the Company accounts for the provision that provides for a contingent return based on equity market performance as an embedded derivative. The embedded derivative is bifurcated from the host contract and recorded at fair value in Other liabilities. The host contract is accounted for as a debt instrument in accordance with ASC Topic 944—Financial Services—Insurance and is recorded in Annuity account balances with any discount to the minimum account value being accreted using the effective yield method. Benefits and settlement expenses include accreted interest and benefit claims incurred during the period.

The Company markets universal life products with a guaranteed minimum interest rate plus a contingent return based on equity market performance and are considered hybrid financial instruments under the FASB’s ASC Topic 815—Derivatives and Hedging. The Company did not elect to value these IUL products at fair value prior to the Merger date. As a result the Company accounts for the provision that provides for a contingent return based on equity market performance as an embedded derivative. The embedded derivative is bifurcated from the host contract and recorded at fair value in Other liabilities. Changes in the fair value of the embedded derivative are recorded in Realized investment gains (losses)—Derivative financial instruments. For more information regarding the determination of fair value of the IUL embedded derivative refer to Note 15, Fair Value of Financial Instruments. The host contract is accounted for as a debt instrument in accordance with ASC Topic 944—Financial Services—Insurance and is recorded

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in Future policy benefits and claims with any discount to the minimum account value being accreted using the effective yield method. Benefits and settlement expenses include accreted interest and benefit claims incurred during the period.

The Company’s accounting policies with respect to variable universal life (“VUL”) and VA are identical except that policy account balances (excluding account balances that earn a fixed rate) are valued at fair value and reported as components of assets and liabilities related to separate accounts.

The Company establishes liabilities for guaranteed minimum death benefits (“GMDB”) on its VA products. The methods used to estimate the liabilities employ assumptions about mortality and the performance of equity markets. The Company assumes age-based mortality from the National Association of Insurance Commissioners 1994 Variable Annuity MGDB Mortality Table for company experience. Future declines in the equity market would increase the Company’s GMDB liability. Differences between the actual experience and the assumptions used result in variances in profit and could result in losses. Our GMDB as of June 30, 2015 (Successor Company), are subject to a dollar-for-dollar reduction upon withdrawal of related annuity deposits on contracts issued prior to January 1, 2003. As of June 30, 2015 (Successor Company), the GMDB reserve was $32.8 million.

Property and Casualty Insurance Products

Property and casualty insurance products include service contract business, surety bonds, and guaranteed asset protection (“GAP”). Unearned premium reserves are maintained for the portion of the premiums that is related to the unexpired period of the policy. Benefit reserves are recorded when insured events occur. Benefit reserves include case basis reserves for known but unpaid claims as of the balance sheet date as well as incurred but not reported (“IBNR”) reserves for claims where the insured event has occurred but has not been reported to the Company as of the balance sheet date. The case basis reserves and IBNR are calculated based on historical experience and on assumptions relating to claim severity and frequency, the level of used vehicle prices, and other factors. These assumptions are modified as necessary to reflect anticipated trends.

Reinsurance

The Company uses reinsurance extensively in certain of its segments and accounts for reinsurance and the recognition of the impact of reinsurance costs in accordance with the ASC Financial Services — Insurance Topic. The following summarizes some of the key aspects of the Company’s accounting policies for reinsurance.

Reinsurance Assets and Liabilities—Claim liabilities and policy benefits are calculated consistently for all policies, regardless of whether or not the policy is reinsured. Once the claim liabilities and policy benefits for the underlying policies are estimated, the amounts recoverable from the reinsurers are estimated based on a number of factors including the terms of the reinsurance contracts, historical payment patterns of reinsurance partners, and the financial strength and credit worthiness of reinsurance partners and recorded as Reinsurance receivables on the balance sheet. The reinsurance receivables were recorded in the balance sheet using current accounting policies and the most current assumptions as of the merger date. As of the merger date, the Company also calculated the ceded VOBA associated with the reinsured policies. The reinsurance receivables combined with the associated ceded VOBA represent the fair value of the reinsurance assets. Liabilities for unpaid reinsurance claims are produced from claims and reinsurance system records, which contain the relevant terms of the individual reinsurance contracts. The Company monitors claims due from reinsurers to ensure that balances are settled on a timely basis. Incurred but not reported claims are reviewed by the Company’s actuarial staff to ensure that appropriate amounts are ceded.

The Company analyzes and monitors the credit worthiness of each of its reinsurance partners to minimize collection issues. For newly executed reinsurance contracts with reinsurance companies that do not meet predetermined standards, the Company requires collateral such as assets held in trusts or letters of credit.

Accounting Pronouncements Recently Adopted

Accounting Standards Update (“ASU”) No. 2014-08—Reporting Discontinued Operations and Disclosure of Disposals of Components of an Entity. This Update changes the requirements for reporting discontinued operations and related disclosures. The Update limits the definition of a discontinued operation to disposals that represent “strategic shifts” that will have a major effect on an entity’s operation and financial results.

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Additionally, the Update requires enhanced disclosures about the components of discontinued operations and the financial effects of the disposal. The amendments in this Update are effective for annual and interim periods beginning after December 15, 2014. The Company has reviewed the additional disclosures required by the Update, and will apply the revised guidance to any disposals occurring after the effective date.

ASU No. 2014-11—Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.  This Update changes the requirements for classification of certain repurchase agreements, and will expand the use of secured borrowing accounting for repurchase-to-maturity transactions. In addition, the Update requires additional disclosures for repurchase agreements accounted for both as sales and as secured borrowings. The amendments in this Update are effective for annual and interim periods beginning after December 15, 2014. The Update did not impact the Company’s financial position or results of operations. The Company has updated its policies and processes to ensure compliance with the additional disclosure requirements in this Update.

ASU No. 2014-17—Business Combinations (Topic 805).  This Update relates to “pushdown accounting”, which refers to pushing down the acquirer’s accounting and reporting basis (which is recognized in conjunction with its accounting for a business combination) to the acquiree’s standalone financial statements. The new guidance makes pushdown accounting optional for an acquiree that is a business or nonprofit activity when there is a change-in- control event (e.g., the acquirer in a business combination obtains control over the acquiree). In addition, the staff of the SEC released Staff Accounting Bulletin (“SAB”) No. 115, which rescinds SAB Topic 5J, “New Basis of Accounting Required in Certain Circumstances” (the SEC staff’s pre-existing guidance on pushdown accounting) and conforms SEC guidance on pushdown accounting to the FASB’s new guidance. Revised SEC guidance was codified in ASU No. 2015-08, issued in May 2015. The new pushdown accounting guidance became effective upon its issuance on November 18, 2014. Although now optional, the Company has applied pushdown accounting to its standalone financial statements effective with the Company becoming a wholly owned subsidiary of Dai-ichi Life on February 1, 2015. The presentation within this report for predecessor and successor periods is consistent with this Update.

Accounting Pronouncements Not Yet Adopted

ASU No. 2014-09—Revenue from Contracts with Customers (Topic 606). This Update provides for significant revisions to the recognition of revenue from contracts with customers across various industries. Under the new guidance, entities are required to apply a prescribed 5-step process to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The accounting for revenues associated with insurance products is not within the scope of this Update. The Update was originally effective for annual and interim periods beginning after December 15, 2017.  However, in July 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year to December 15, 2018. Early adoption will be allowed, but not before the original effective date. The Company is reviewing its policies and processes to ensure compliance with the requirements in this Update, upon adoption. The Company is currently assessing the impact this standard will have on its non-insurance operations.

ASU No. 2014-15—Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This Update will require management to assess an entity’s ability to continue as a going concern, and will require footnote disclosures in certain circumstances. Under the updated guidance, management should consider relevant conditions and evaluate whether it is probable that the entity will be unable to meet its obligations within one year after the issuance date of the financial statements. The Update is effective for annual periods ending December 31, 2016 and interim periods thereafter, with early adoption is permitted. The amendments in this Update will not impact the Company’s financial position or results of operations. However, the new guidance will require a formal assessment of going concern by management based on criteria prescribed in the new guidance. The Company is reviewing its policies and processes to ensure compliance with the new guidance.

ASU No. 2015-02—Consolidation—Amendments to the Consolidation Analysis.  This Update makes several targeted changes to generally accepted accounting principles, including a) eliminating the presumption that a general partner should consolidate a limited partnership and b) eliminating the consolidation model specific to limited partnerships. The amendments also clarify when fees and related party relationships should be considered in the consolidation of variable interest entities. The amendments in this Update are effective for annual and interim periods

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beginning after December 15, 2015. The Company is reviewing its policies and processes to ensure compliance with the requirements in this Update, upon adoption.

ASU No. 2015-03—Interest—Imputation of Interest. The objective of this Update is to eliminate diversity in practice related to the presentation of debt issuance costs. The amendments in this Update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update. The Update is effective for fiscal years beginning after December 15, 2015, and requires revised presentation of debt issuance costs in all periods presented in the financial statements. The Company is reviewing its processes to ensure compliance with the revised guidance.

ASU No. 2015-05 — Intangibles — Goodwill and Other — Internal-Use Software. The amendments in this Update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer’s accounting for service contracts. The Update is effect for annual and interim periods beginning after December 15, 2015. The Company is reviewing its policies and processes to ensure compliance with the revised guidance.

ASU No. 2015-09 — Financial Services—Insurance (Topic 944): Disclosures about Short-Duration Contracts. The amendments in this Update require additional disclosures for short-duration contracts issued by insurance entities. The additional disclosures focus on the liability for unpaid claims and claim adjustment expenses and include incurred and paid claims development information by accident year in tabular form, along with a reconciliation of this information to the statement of financial position. For accident years included in the development tables, the amendments also require disclosure of the total incurred-but-not-reported liabilities and expected development on reported claims, along with claims frequency information unless impracticable. Finally, the amendments require disclosure of the historical average annual percentage payout of incurred claims. With the exception of the current reporting period, claims development information may be presented as supplementary information. The Update is effective for annual periods beginning after December 15, 2015 and interim periods beginning after December 15, 2016. The Company is reviewing its products to determine the applicability and potential impact of the new disclosures.

3.DAI-ICHI MERGER

On February 1, 2015 the Company, subsequent to required approvals from the Company’s shareholders and relevant regulatory authorities, became a wholly owned subsidiary of Dai-ichi Life as contemplated by the Agreement and Plan of Merger (the “Merger Agreement”) with Dai-ichi Life and DL Investment (Delaware), Inc., a Delaware corporation and wholly owned subsidiary of Dai-ichi Life, which provided for the Merger of DL Investment (Delaware), Inc. with and into the Company, with the Company surviving the Merger as a wholly owned subsidiary of Dai-ichi Life. On February 1, 2015 each share of the Company’s common stock outstanding was converted into the right to receive $70 per share, without interest (the “Per Share Merger Consideration”). The aggregate cash consideration paid in connection with the Merger for the outstanding shares of common stock was approximately $5.6 billion and paid directly to the shareowners of record by Dai-ichi Life. According to public statements by both companies, the Merger will provide Dai-ichi Life with a platform for growth in the United States, where it did not previously have a significant presence. In connection with the completion of the Merger, the Company’s previously publicly traded equity was delisted from the NYSE, although the Company remains an SEC registrant for financial reporting purposes in the United States.

The Merger was accounted for under the acquisition method of accounting under ASC Topic 805. In accordance with ASC Topic 805-20-30, all identifiable assets acquired and liabilities assumed were measured at fair value as of the acquisition date. Goodwill of $735.7 million represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in the Merger, and reflects the Company’s assembled workforce, future growth potential and other sources of value not associated with identifiable assets. None of the goodwill is tax deductible.

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The following table summarizes the consideration paid for the acquisition and the preliminary determination of the fair value of assets acquired and liabilities assumed at the acquisition date:

	Fair Value
	As of
	February 1, 2015
	(Dollars In Thousands)
Assets
Fixed maturities	$	38,363,025
Equity securities	745,512
Mortgage loans	5,580,229
Investment real estate	7,456
Policy loans	1,751,872
Other long-term investments	686,507
Short-term investments	316,167
Total investments	47,450,768
Cash	462,710
Accrued investment income	484,021
Accounts and premiums receivable	112,182
Reinsurance receivables	5,724,020
Value of business acquired	1,276,886
Goodwill	735,712
Other intangibles	683,000
Property and equipment	104,364
Other assets	120,762
Income tax receivable	15,458
Assets related to separate accounts
Variable annuity	12,970,587
Variable universal life	819,188
Total assets	$	70,959,658
Liabilities
Future policy and benefit claims	$	30,195,841
Unearned premiums	682,183
Total policy liabilities and accruals	30,878,024
Stable value product account balances	1,932,277
Annuity account balances	10,941,661
Other policyholders’ funds	1,388,083
Other liabilities	2,188,863
Deferred income taxes	1,535,556
Non-recourse funding obligations	621,798
Repurchase program borrowings	50,000
Debt	1,519,211
Subordinated debt securities	560,351
Liabilities related to separate accounts
Variable annuity	12,970,587
Variable universal life	819,188
Total liabilities	65,405,599
Net assets acquired	$	5,554,059

As of the acquisition date, all contractual cash flows related to the Company’s historical and acquired receivables (as presented within this consolidated balance sheet) are expected to be collected.

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Intangible assets recognized by the Company included the following (excluding goodwill):

	Estimated
	Fair Value on		Estimated
	Acquisition Date		Useful Life
	(Dollars In Thousands)		(In Years)
Distribution relationships	$	405,000	14-22
Trade names	103,000		13-17
Technology	143,000		7-14
Total intangible assets subject to amortization	651,000
Insurance licenses	32,000		Indefinite
Total intangible assets	$	683,000

Identified intangible assets were valued using the excess earnings method, relief from royalty method or cost approach, as appropriate.

Amortizable intangible assets will be amortized straight line over their assigned useful lives. The following is a schedule of estimated aggregate amortization expense:

Year	Amount
	(Dollars In Thousands)
2015	$	20,657
2016	41,313
2017	41,313
2018	41,313
2019	41,313

All tangible and intangible assets of the Company were allocated to applicable operating segments in connection with the recording of pushdown accounting.  The purchase price was also allocated to each operating segment in accordance with the determined fair value of the operating segments, such that the total reconciled with the total consideration paid in the merger.  Subtraction of the fair value of the tangible and intangible assets for each operating segment from the allocated purchase price of that operating segment resulted in the goodwill allocated to each operating segment. The amount of goodwill allocated to each operating segment is reflected in Note 18, Operating Segments.

Treatment of certain acquisition related costs

The Company recorded costs related to the Merger in either the predecessor or successor periods based on the specific facts and circumstances underlying each individual transaction. Certain of these costs were fully contingent on the consummation of the Merger on February 1, 2015 (Successor Company). These costs are not expensed in either the Predecessor or Successor Company Statement of Comprehensive Income (Loss). Liabilities for payment of these contingent costs are included in the opening balance sheet as of February 1, 2015 (Successor Company), and the nature and amount of the costs are discussed below.

Fees in the amount of $28.8 million which were paid to the Company’s financial advisor related to the Merger were recorded as liabilities as of the acquisition date. In accordance with the terms of the contract, payment of these fees was contingent on the successful closing of the Merger, and became payable on the date thereof.

Certain of the Company’s stock-based compensation arrangements provided for acceleration of benefits on the completion of a change-in-control event. Upon the completion of the Merger, benefits in the amount of $138.2 million became payable to eligible employees under these arrangements. Such accounts are recorded as liabilities as of the acquisition closing date. The portion of this payable that represented expense accelerated on the merger date was $25.4 million.

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Treatment of Benefit Plans

At or immediately prior to the Merger, each stock appreciation right with respect to shares of Common Stock granted under any Stock Plan (each, a “SAR”) that were outstanding and unexercised immediately prior to the Merger and that had a base price per share of Common Stock underlying such SAR (the “Base Price”) that was less than the Per Share Merger Consideration (each such SAR, an “In-the-Money SAR”), whether or not exercisable or vested, was cancelled and converted into the right to receive an amount in cash less any applicable withholding taxes, determined by multiplying (i) the excess of the Per Share Merger Consideration over the Base Price of such In-the-Money SAR by (ii) the number of shares of Common Stock subject to such In-the-Money SAR (such amount, the “SAR Consideration”).

At or immediately prior to the effective time of the Merger, each restricted stock unit with respect to a share of Common Stock granted under any Stock Plan (each, a “RSU”) that was outstanding immediately prior to the Merger, whether or not vested, was cancelled and converted into the right to receive an amount in cash, without interest, less any applicable withholding taxes, determined by multiplying (i) the Per Share Merger Consideration by (ii) the number of RSUs.

The number of performance shares earned for each award of performance shares granted under any Stock Plan was calculated by determining the number of performance shares that would have been paid if the subject award period had ended on the December 31 immediately preceding the Merger (based on the conditions set for payment of performance share awards for the subject award period), provided that the number of performance shares earned for each award were not less than the aggregate number of performance shares at the target performance level. Each performance share earned that was outstanding immediately prior to the Merger, whether or not vested, was cancelled and converted into the right to receive an amount in cash, without interest, less any applicable withholding taxes, determined by multiplying (i) the Per Share Merger Consideration by (ii) the number of Performance Shares.

4.MONY CLOSED BLOCK OF BUSINESS

In 1998, MONY Life Insurance Company (“MONY”) converted from a mutual insurance company to a stock corporation (“demutualization”). In connection with its demutualization, an accounting mechanism known as a closed block (the “Closed Block”) was established for certain individuals’ participating policies in force as of the date of demutualization. Assets, liabilities, and earnings of the Closed Block are specifically identified to support its participating policyholders. The Company acquired the Closed Block in conjunction with the acquisition of MONY in 2013.

Assets allocated to the Closed Block inure solely to the benefit of each Closed Block’s policyholders and will not revert to the benefit of MONY or the Company. No reallocation, transfer, borrowing or lending of assets can be made between the Closed Block and other portions of MONY’s general account, any of MONY’s separate accounts or any affiliate of MONY without the approval of the Superintendent of The New York State Insurance Department (the “Superintendent”). Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the general account.

The excess of Closed Block liabilities over Closed Block assets (adjusted to exclude the impact of related amounts in accumulated other comprehensive income (loss) (“AOCI”)) at the merger date represented the estimated maximum future post-tax earnings from the Closed Block that would be recognized in income from continuing operations over the period the policies and contracts in the Closed Block remain in force. In connection with the acquisition of MONY, the Company developed an actuarial calculation of the expected timing of MONY’s Closed Block’s earnings as of October 1, 2013. Pursuant to the acquisition of the Company by Dai-ichi Life, this actuarial calculation of the expected timing of MONY’s Closed Block earnings was recalculated and reset as of February 1, 2015, along with the establishment of a policyholder dividend obligation as of such date.

If the actual cumulative earnings from the Closed Block are greater than the expected cumulative earnings, only the expected earnings will be recognized in the Company’s net income. Actual cumulative earnings in excess of expected cumulative earnings at any point in time are recorded as a policyholder dividend obligation because they will ultimately be paid to Closed Block policyholders as an additional policyholder dividend unless offset by future performance that is less favorable than originally expected. If a policyholder dividend obligation has been previously

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established and the actual Closed Block earnings in a subsequent period are less than the expected earnings for that period, the policyholder dividend obligation would be reduced (but not below zero). If, over the period the policies and contracts in the Closed Block remain in force, the actual cumulative earnings of the Closed Block are less than the expected cumulative earnings, only actual earnings would be recognized in income from continuing operations. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside the Closed Block.

Many expenses related to Closed Block operations, including amortization of VOBA, are charged to operations outside of the Closed Block; accordingly, net revenues of the Closed Block do not represent the actual profitability of the Closed Block operations. Operating costs and expenses outside of the Closed Block are, therefore, disproportionate to the business outside of the Closed Block.

Summarized financial information for the Closed Block as of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company) is as follows.

	Successor		Predecessor
	Company		Company
	As of		As of
	June 30, 2015		December 31, 2014
	(Dollars In Thousands)		(Dollars In Thousands)
Closed block liabilities
Future policy benefits, policyholders’ account balances and other policyholder liabilities	$	6,062,552	$	6,138,505
Policyholder dividend obligation	52,283		366,745
Other liabilities	18,885		53,838
Total closed block liabilities	6,133,720		6,559,088
Closed block assets
Fixed maturities, available-for-sale, at fair value	$	4,424,934	$	4,524,037
Equity securities, available-for-sale, at fair value	—		5,387
Mortgage loans on real estate	345,678		448,855
Policy loans	755,692		771,120
Cash and other invested assets	34,511		30,984
Other assets	154,346		221,270
Total closed block assets	5,715,161		6,001,653
Excess of reported closed block liabilities over closed block assets	418,559		557,435
Portion of above representing accumulated other comprehensive income:
Net unrealized investment gains (losses) net of deferred tax benefit of $0 (Successor) and $0 (Predecessor); net of policyholder dividend obligation of $166,434 (Successor) and $106,886 (Predecessor)	—		—
Future earnings to be recognized from closed block assets and closed block liabilities	$	418,559	$	557,435

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Reconciliation of the policyholder dividend obligation is as follows:

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015			For The Six
	to			to			Months Ended
	June 30, 2015			January 31, 2015			June 30, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Policyholder dividend obligation, beginning of period	$	323,432		$	366,745		$	190,494
Applicable to net revenue (losses)	(15,096		)	(1,369		)	(6,951		)
Change in net unrealized investment gains (losses) allocated to the policyholder dividend obligation	(256,053		)	135,077			145,329
Policyholder dividend obligation, end of period	$	52,283		$	500,453		$	328,872

Closed Block revenues and expenses were as follows:

	Successor Company				Predecessor Company
	For The Three		February 1, 2015		January 1, 2015		For The Three		For The Six
	Months Ended		to		to		Months Ended		Months Ended
	June 30, 2015		June 30, 2015		January 31, 2015		June 30, 2014		June 30, 2014
	(Dollars In Thousands)				(Dollars In Thousands)
Revenues
Premiums and other income	$	49,998	$	81,669	$	15,065	$	53,073	$	102,846
Net investment income (loss)	54,833		87,681		19,107		60,416		112,623
Net investment gains (losses)	2,216		2,850		568		1,086		6,105
Total revenues	107,047		172,200		34,740		114,575		221,574
Benefits and other deductions
Benefits and settlement expenses	98,975		154,746		31,152		103,209		199,535
Other operating expenses	263		474		—		383		90
Total benefits and other deductions	99,238		155,220		31,152		103,592		199,625
Net revenues before income taxes	7,809		16,980		3,588		10,983		21,949
Income tax expense	2,733		5,943		1,256		3,844		7,682
Net revenues	$	5,076	$	11,037	$	2,332	$	7,139	$	14,267

5.INVESTMENT OPERATIONS

Net realized gains (losses) for all other investments are summarized as follows:

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Fixed maturities	$	3,339		$	3,712		$	6,891		$	20,198		$	27,568
Equity securities	21			21			—			—			—
Impairments on fixed maturity securities	(5,734		)	(5,734		)	(481		)	(1,460		)	(3,051		)
Impairments on equity securities	—			—			—			—			—
Modco trading portfolio	(108,741		)	(141,901		)	73,062			60,989			127,292
Other investments	3,044			775			1,200			(1,039		)	(2,598		)
Total realized gains (losses) - investments	$	(108,071	)	$	(143,127	)	$	80,672		$	78,688		$	149,211

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For the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company), gross realized gains on investments available-for-sale (fixed maturities, equity securities, and short-term investments) were $5.4 million and $6.9 million and gross realized losses were $7.8 million and $8.9 million, respectively, including $5.7 million and $5.7 million of impairment losses, respectively.

For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), gross realized gains on investments available-for-sale (fixed maturities, equity securities, and short-term investments) were $6.9 million and gross realized losses were $0.5 million, including $0.4 million of impairment losses.

For the three and six months ended June 30, 2014 (Predecessor Company), gross realized gains on investments available-for-sale (fixed maturities, equity securities, and short-term investments) were $20.4 million and $28.10 million and gross realized losses were $1.6 million and $3.4 million, including $1.4 million and $2.9 million of impairment losses, respectively.

For the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company), the Company sold securities in an unrealized gain position with a fair value (proceeds) of $432.2 million and $715.0 million, respectively. The gains realized on the sale of these securities was $5.4 million and $6.9 million, respectively.

For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company sold securities in an unrealized gain position with a fair value (proceeds) of $172.6 million. The gain realized on the sale of these securities was $6.9 million.

For the three and six months ended June 30, 2014 (Predecessor Company), the Company sold securities in an unrealized gain position with a fair value (proceeds) of $306.3 million and $571.0 million, respectively. The gains realized on the sale of these securities was $20.4 million and $28.1 million, respectively.

For the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company), the Company sold securities in an unrealized loss position with a fair value (proceeds) of $28.6 million and $49.3 million, respectively. The loss realized on the sale of these securities was $2.1 million and $3.2 million, respectively. The Company made the decision to exit these holdings in conjunction with our overall asset liability management process.

For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company sold securities in an unrealized loss position with a fair value (proceeds) of $0.4 million. The loss realized on the sale of these securities were immaterial to the Company. The Company made the decision to exit these holdings in conjunction with our overall asset liability management process.

For the three and six months ended June 30, 2014 (Predecessor Company), the Company sold securities in an unrealized loss position with a fair value (proceeds) of $1.6 million and $4.4 million, respectively. The losses realized on the sale of these securities were $0.2 million and $0.5 million, respectively. The Company made the decision to exit these holdings in conjunction with our overall asset liability management process.

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The amortized cost and fair value of the Company’s investments classified as available-for-sale as of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), are as follows:

			Gross		Gross					Total OTTI
Successor Company	Amortized		Unrealized		Unrealized			Fair		Recognized
As of June 30, 2015	Cost		Gains		Losses			Value		in OCI(1)
			(Dollars In Thousands)
Fixed maturities:
Residential mortgage-backed securities	$	1,594,167	$	6,244	$	(23,585	)	$	1,576,826	$	—
Commercial mortgage-backed securities	1,236,987		271		(34,102		)	1,203,156		—
Other asset-backed securities	820,349		2,062		(22,940		)	799,471		—
U.S. government-related securities	1,644,086		427		(42,983		)	1,601,530		—
Other government-related securities	19,578		—		(796		)	18,782		—
States, municipals, and political subdivisions	1,720,059		59		(135,050		)	1,585,068		—
Corporate securities	28,044,507		51,209		(1,926,339		)	26,169,377		(7,024		)
Preferred stock	64,362		—		(2,695		)	61,667		—
	35,144,095		60,272		(2,188,490		)	33,015,877		(7,024		)
Equity securities	725,747		903		(12,498		)	714,152		—
Short-term investments	160,855		—		—			160,855		—
	$	36,030,697	$	61,175	$	(2,200,988	)	$	33,890,884	$	(7,024	)

Predecessor Company
As of December 31, 2014
Fixed maturities:
Residential mortgage-backed securities	$	1,374,206	$	56,330	$	(12,278	)	$	1,418,258	$	6,404
Commercial mortgage-backed securities	1,119,979		59,637		(2,364		)	1,177,252		—
Other asset-backed securities	857,441		17,885		(35,950		)	839,376		(95		)
U.S. government-related securities	1,394,028		44,149		(9,282		)	1,428,895		—
Other government-related securities	16,939		3,233		—			20,172		—
States, municipals, and political subdivisions	1,391,526		296,594		(431		)	1,687,689		—
Corporate securities	24,765,303		2,759,255		(139,031		)	27,385,527		—
	30,919,422		3,237,083		(199,336		)	33,957,169		6,309
Equity securities	757,259		38,669		(14,182		)	781,746		—
Short-term investments	155,500		—		—			155,500		—
	$	31,832,181	$	3,275,752	$	(213,518	)	$	34,894,415	$	6,309

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

The preferred stock shown above as of June 30, 2015 (Successor Company) is included in the equity securities total as of December 31, 2014 (Predecessor Company).

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The amortized cost and fair value of the Company’s investments classified as held-to-maturity as of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), are as follows:

			Gross		Gross					Total OTTI
Successor Company	Amortized		Unrealized		Unrealized			Fair		Recognized
As of June 30, 2015	Cost		Gains		Losses			Value		in OCI
	(Dollars In Thousands)
Fixed maturities:
Other	$	565,334	$	—	$	(75,384	)	$	489,950	$	—
	$	565,334	$	—	$	(75,384	)	$	489,950	$	—

Predecessor Company
As of December 31, 2014
Fixed maturities:
Other	$	435,000	$	50,422	$	—	$	485,422	$	—
	$	435,000	$	50,422	$	—	$	485,422	$	—

During the period of February 1, 2015 to June 30, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the six months ended June 30, 2014 (Predecessor Company), the Company did not record any other-than-temporary impairments on held-to-maturity securities. The Company’s held-to-maturity securities had $75.4 million of gross unrecognized holding losses as of June 30, 2015 (Successor Company).  The Company does not consider these unrecognized holding losses to be other-than-temporary based on certain positive factors associated with the securities which include credit ratings, financial health of the issuer, continued access of the issuer to capital markets and other pertinent information.

The Company’s held-to-maturity securities had no gross unrecognized holding losses as of December 31, 2014 (Predecessor Company).

As of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), the Company had an additional $2.7 billion and $2.8 billion of fixed maturities, $8.3 million and $21.5 million of equity securities, and $43.8 million and $95.1 million of short-term investments classified as trading securities, respectively.

The amortized cost and fair value of available-for-sale and held-to-maturity fixed maturities as of June 30, 2015 (Successor Company), by expected maturity, are shown below. Expected maturities of securities without a single maturity date are allocated based on estimated rates of prepayment that may differ from actual rates of prepayment.

	Successor Company
	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	$	849,305	$	849,114	$	—	$	—
Due after one year through five years	5,172,275		5,141,272		—		—
Due after five years through ten years	8,508,443		8,293,471		—		—
Due after ten years	20,614,072		18,732,020		565,334		489,950
	$	35,144,095	$	33,015,877	$	565,334	$	489,950

During the three months ended June 30, 2015 (Successor Company) and the period of February 1, 2015 to June 30, 2015 (Successor Company), the Company recorded pre-tax other-than-temporary impairments of investments of $13.4 million and $13.4 million, respectively. Of the $13.4 million of impairments for the three months ended June

23

30, 2015 (Successor Company) and the period of February 1, 2015 to June 30, 2015 (Successor Company) $5.7 million was recorded in earnings and $7.7 million was recorded in other comprehensive income (loss).

There were no other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell for the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company).

During the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company recorded pre-tax other-than-temporary impairments of investments of $0.6 million, all of which related to fixed maturities. Credit impairments recorded in earnings during the period were $0.5 million. During the period of January 1, 2015 to January 31, 2015 (Predecessor Company), $0.1 million of non-credit losses previously recorded in other comprehensive income were recorded in earnings as credit losses. There were no other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell for the period of January 1, 2015 to January 31, 2015 (Predecessor Company).

During the three and six months ended June 30, 2014 (Predecessor Company), the Company recorded pre-tax other-than-temporary impairments of investments of $0.5 million and $0.9 million, respectively, all of which related to fixed maturities. Credit impairments recorded in earnings during the three and six months ended June 30, 2014 (Predecessor Company) were $1.5 million and $3.1 million, respectively. During the three and six months ended June 30, 2014 (Predecessor Company), $1.0 million and $2.2 million, respectively, of non-credit losses previously recorded in other comprehensive income (loss) were recorded in earnings as credit losses. There were no other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell for the three and six months ended June 30, 2014 (Predecessor Company).

The following chart is a rollforward of available-for-sale credit losses on fixed maturities held by the Company for which a portion of an other-than-temporary impairment was recognized in other comprehensive income (loss):

	Successor				Predecessor
	Company				Company
	For The Three		February 1, 2015		January 1, 2015		For The Three			For The Six
	Months Ended		to		to		Months Ended			Months Ended
	June 30, 2015		June 30, 2015		January 31, 2015		June 30, 2014			June 30, 2014
	(Dollars In Thousands)				(Dollars In Thousands)
Beginning balance	$	—	$	—	$	15,478	$	20,839		$	41,692
Additions for newly impaired securities	4,472		4,472		—		—			—
Additions for previously impaired securities	—		—		221		553			1,027
Reductions for previously impaired securities due to a change in expected cash flows	—		—		—		(3,407		)	(24,734		)
Reductions for previously impaired securities that were sold in the current period	—		—		—		—			—
Ending balance	$	4,472	$	4,472	$	15,699	$	17,985		$	17,985

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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 June 30, 2015 (Successor Company):

	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	$	1,043,439	$	(23,585	)	$	—	$	—	$	1,043,439	$	(23,585	)
Commercial mortgage-backed securities	1,125,342		(34,102		)	—		—		1,125,342		(34,102		)
Other asset-backed securities	723,695		(22,940		)	—		—		723,695		(22,940		)
U.S. government-related securities	1,569,203		(42,983		)	—		—		1,569,203		(42,983		)
Other government-related securities	18,782		(796		)	—		—		18,782		(796		)
States, municipalities, and political subdivisions	1,583,913		(135,050		)	—		—		1,583,913		(135,050		)
Corporate securities	23,716,026		(1,926,339		)	—		—		23,716,026		(1,926,339		)
Preferred stock	61,667		(2,695		)	—		—		61,667		(2,695		)
Equities	496,563		(12,498		)	—		—		496,563		(12,498		)
	$	30,338,630	$	(2,200,988	)	$	—	$	—	$	30,338,630	$	(2,200,988	)

The preferred stock shown above as of June 30, 2015 (Successor Company) is included in the equity securities total as of December 31, 2014 (Predecessor Company).

The book value of the Company’s investment portfolio was marked to fair value as of February 1, 2015 (Successor Company), in conjunction with the Dai-ichi Merger which resulted in the elimination of previously unrealized gains and losses from accumulated other comprehensive income. The level of interest rates as of February 1, 2015 (Successor Company) resulted in an increase in the fair value of the Company’s investments. Since February 1, 2015 (Successor Company) interest rates have increased resulting in net unrealized losses in the Company’s investment portfolio.

The Company does not consider these unrealized loss positions to be other-than-temporary, based on the aggregate factors discussed previously and because the Company has the ability and intent to hold these investments until the fair values recover, and does not intend to sell or expect to be required to sell the securities before recovering the Company’s amortized cost of the securities.

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 December 31, 2014 (Predecessor Company):

	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	$	166,271	$	(9,562	)	$	67,280	$	(2,716	)	$	233,551	$	(12,278	)
Commercial mortgage-backed securities	49,909		(334		)	102,529		(2,030		)	152,438		(2,364		)
Other asset-backed securities	108,666		(6,473		)	537,486		(29,477		)	646,152		(35,950		)
U.S. government-related securities	231,917		(3,868		)	280,803		(5,414		)	512,720		(9,282		)
Other government-related securities	—		—			—		—			—		—
States, municipalities, and political subdivisions	1,904		(134		)	10,482		(297		)	12,386		(431		)
Corporate securities	1,659,287		(76,341		)	776,864		(62,690		)	2,436,151		(139,031		)
Equities	17,430		(217		)	129,719		(13,965		)	147,149		(14,182		)
	$	2,235,384	$	(96,929	)	$	1,905,163	$	(116,589	)	$	4,140,547	$	(213,518	)

RMBS had a gross unrealized loss greater than twelve months of $2.7 million as of December 31, 2014 (Predecessor Company). Factors such as the credit enhancement within the deal structure, the average life of the securities, and the performance of the underlying collateral support the recoverability of these investments.

25

CMBS had a gross unrealized loss greater than twelve months of $2.0 million as of December 31, 2014 (Predecessor Company). Factors such as the credit enhancement within the deal structure, the average life of the securities, and the performance of the underlying collateral support the recoverability of these investments.

The other asset-backed securities had a gross unrealized loss greater than twelve months of $29.5 million as of December 31, 2014 (Predecessor Company). This category predominately includes student-loan backed auction rate securities, the underlying collateral, of which is at least 97% guaranteed by the Federal Family Education Loan Program (“FFELP”). These unrealized losses have occurred within the Company’s auction rate securities (“ARS”) portfolio since the market collapse during 2008. At this time, the Company has no reason to believe that the U.S. Department of Education would not honor the FFELP guarantee, if it were necessary.

The U.S. government-related category had gross unrealized losses greater than twelve months of $5.4 million as of December 31, 2014 (Predecessor Company). These declines were entirely related to changes in interest rates.

The corporate securities category had gross unrealized losses greater than twelve months of $62.7 million as of December 31, 2014 (Predecessor Company). The aggregate decline in market value of these securities was deemed temporary due to positive factors supporting the recoverability of the respective investments. Positive factors considered include credit ratings, the financial health of the issuer, the continued access of the issuer to capital markets, and other pertinent information.

The equities category had a gross unrealized loss greater than twelve months of $14.0 million as of December 31, 2014 (Predecessor Company). The aggregate decline in market value of these securities was deemed temporary due to factors supporting the recoverability of the respective investments. Positive factors include credit ratings, the financial health of the issuer, the continued access of the issuer to the capital markets, and other pertinent information.

As of June 30, 2015, the Company had a total of 2,435 positions that were in an unrealized loss position, but the Company does not consider these unrealized loss positions to be other-than-temporary. This is based on the aggregate factors discussed previously and because the Company has the ability and intent to hold these investments until the fair values recover, and the Company does not intend to sell or expect to be required to sell the securities before recovering the Company’s amortized cost of the securities.

As of June 30, 2015 (Successor Company), the Company had securities in its available-for-sale portfolio which were rated below investment grade of $1.6 billion and had an amortized cost of $1.6 billion. In addition, included in the Company’s trading portfolio, the Company held $308.8 million of securities which were rated below investment grade. Approximately $403.3 million of the below investment grade securities were not publicly traded.

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

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015		For The Three		For The Six
	Months Ended			to			to		Months Ended		Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015		June 30, 2014		June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Fixed maturities	$	(1,040,143	)	$	(1,383,342	)	$	670,229	$	519,745	$	1,148,357
Equity securities	(9,048		)	(7,537		)	10,226		14,591		33,004

Variable Interest Entities

The Company holds certain investments in entities in which its ownership interests could possibly be considered variable interests under Topic 810 of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC” or “Codification”) (excluding debt and equity securities held as trading, available for sale, or held to maturity). The Company reviews the characteristics of each of these applicable entities and compares

26

those characteristics to applicable criteria to determine whether the entity is a Variable Interest Entity (“VIE”). If the entity is determined to be a VIE, the Company then performs a detailed review to determine whether the interest would be considered a variable interest under the guidance. The Company then performs a qualitative review of all variable interests with the entity and determines whether the Company is the primary beneficiary. ASC 810 provides that an entity is the primary beneficiary of a VIE if the entity has 1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and 2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE.

Based on this analysis, the Company had an interest in one wholly owned subsidiary, Red Mountain, LLC (“Red Mountain”), that was determined to be a VIE as of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company). The activity most significant to Red Mountain is the issuance of a note in connection with a financing transaction involving Golden Gate V Vermont Captive Insurance Company (“Golden Gate V”) and the Company in which Golden Gate V issued non-recourse funding obligations to Red Mountain and Red Mountain issued the note to Golden Gate V. Credit enhancement on the Red Mountain Note is provided by an unrelated third party. For details of this transaction, see Note 9, Debt and Other Obligations. The Company had the power, via its 100% ownership through an affiliate, to direct the activities of the VIE, but did not have the obligation to absorb losses related to the primary risks or sources of variability to the VIE. The variability of loss would be borne primarily by the third party in its function as provider of credit enhancement on the Red Mountain Note. Accordingly, it was determined that the Company is not the primary beneficiary of the VIE. The Company’s risk of loss related to the VIE is limited to its investment of $10,000. Additionally, the Company has guaranteed the VIE’s payment obligation for the credit enhancement fee to the unrelated third party provider. As of June 30, 2015 (Successor Company), no payments have been made or required related to this guarantee.

6.MORTGAGE LOANS

Mortgage Loans

The Company invests a portion of its investment portfolio in commercial mortgage loans. As of June 30, 2015 (Successor Company), the Company’s mortgage loan holdings were approximately $5.7 billion. The Company has specialized in making loans on either credit-oriented commercial properties or credit-anchored strip shopping centers and apartments. The Company’s underwriting procedures relative to its commercial loan portfolio are based, in the Company’s view, on a conservative and disciplined approach. The Company concentrates on a small number of commercial real estate asset types associated with the necessities of life (retail, multi-family, senior living, professional office buildings, and warehouses). The Company believes that these asset types tend to weather economic downturns better than other commercial asset classes in which it has chosen not to participate. The Company believes this disciplined approach has helped to maintain a relatively low delinquency and foreclosure rate throughout its history. The majority of the Company’s mortgage loans portfolio was underwritten and funded by the Company. From time to time, the Company may acquire loans in conjunction with an acquisition.

The Company’s commercial mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, and net of valuation allowances. Interest income is accrued on the principal amount of the loan based on the loan’s contractual interest rate. Amortization of premiums and discounts is recorded using the effective yield method. Interest income, amortization of premiums and discounts and prepayment fees are reported in net investment income.

As of February 1, 2015 all mortgage loans were measured at fair value. Each mortgage loan was individually analyzed to determine the fair value. Each loan was either analyzed and assigned a discount rate or given an impairment, based on whether facts and circumstances which, as of the acquisition date, indicated less than full projected collections of contractual principal and interest payments. Various market factors were considered in determining the net present value of the expected cash flow stream or underlying real estate collateral, including the characteristics of the borrower, the underlying collateral, underlying credit worthiness of the tenants, and tenant payment history. Known events and risks, such as refinancing risks, were also considered in the fair value determination. In certain cases, fair value was based on the NPV of the expected cash flow stream or the underlying value of the real estate collateral.

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Certain of the mortgage loans have call options between 3 and 10 years. However, if interest rates were to significantly increase, we may be unable to exercise the call options on our existing mortgage loans commensurate with the significantly increased market rates. As of June 30, 2015, assuming the loans are called at their next call dates, approximately $121.1 million would become due for the remainder of 2015, $953.0 million in 2016 through 2020, $377.9 million in 2021 through 2025, and $118.3 million thereafter.

The Company offers a type of commercial mortgage loan under which the Company will permit a loan-to-value ratio of up to 85% in exchange for a participating interest in the cash flows from the underlying real estate. As of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), approximately $548.4 million and $553.6 million, respectively, of the Company’s mortgage loans have this participation feature. Cash flows received as a result of this participation feature are recorded as interest income. During the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company), January 1, 2015 to January 31, 2015 (Predecessor Company), and for the three and six months ended June 30, 2014 (Predecessor Company), the Company recognized $3.3 million, $5.1 million, $0.1 million, $2.8 million, and $5.8 million, respectively, of participating mortgage loan income.

As of June 30, 2015 (Successor Company), approximately $4.2 million, or 0.01%, of invested assets consisted of nonperforming mortgage loans, restructured mortgage loans, and/or mortgage loans that were foreclosed and were converted to real estate properties. The Company does not expect these investments to adversely affect its liquidity or ability to maintain proper matching of assets and liabilities. During the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company entered into certain mortgage loan transactions that were accounted for as troubled debt restructurings under Topic 310 of the FASB ASC. For all mortgage loans, the impact of troubled debt restructurings is generally reflected in the Company’s investment balance and in the allowance for mortgage loan credit losses. Transactions accounted for as troubled debt restructurings during the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company) included either the acceptance of assets in satisfaction of principal during the respective periods or at a future date, and were the result of agreements between the creditor and the debtor. During the period of February 1, 2015 to June 30, 2015 (Successor Company), the Company accepted or agreed to accept assets of $1.5 million in satisfaction of $2.0 million of principal and for the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company accepted or agreed to accept assets of $11.3 million in satisfaction of $13.8 million of principal. These transactions resulted in no material realized losses in the Company’s investment in mortgage loans net of existing discounts recorded for mortgage loans losses for the period of February 1, 2015 to June 30, 2015 (Successor Company).

The Company’s mortgage loan portfolio consists of two categories of loans: 1) those not subject to a pooling and servicing agreement and 2) those subject to a contractual pooling and servicing agreement. As of June 30, 2015 (Successor Company), $4.2 million of mortgage loans not subject to a pooling and servicing agreement were nonperforming mortgage loans, restructured mortgage loans, and/or mortgage loans that were foreclosed and were converted to real estate properties. None of the restructured loans were nonperforming during the periods of February 1, 2015 to June 30, 2015 (Successor Company) and January 1, 2015 to January 31, 2015 (Predecessor Company). The Company did not foreclose on any nonperforming loans not subject to a pooling and servicing agreement during the periods of February 1, 2015 to June 30, 2015 (Successor Company) and January 1, 2015 to January 31, 2015 (Predecessor Company).

As of June 30, 2015 (Successor Company), none of the loans subject to a pooling and servicing agreement were nonperforming or restructured. The Company did not foreclose on any nonperforming loans subject to pooling and servicing agreement during the periods of February 1, 2015 to June 30, 2015 (Successor Company) and January 1, 2015 to January 31, 2015 (Predecessor Company).

As of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), the Company had an allowance for mortgage loan credit losses of $0.5 million and $5.7 million, respectively. Due to the Company’s loss experience and nature of the loan portfolio, the Company believes that a collectively evaluated allowance would be inappropriate. The Company believes an allowance calculated through an analysis of specific loans that are believed to have a higher risk of credit impairment provides a more accurate presentation of expected losses in the portfolio and is consistent with the applicable guidance for loan impairments in ASC Subtopic 310. Since the Company uses the specific identification method for calculating the allowance, it is necessary to review the economic situation of each

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borrower to determine those that have higher risk of credit impairment. The Company has a team of professionals that monitors borrower conditions such as payment practices, borrower credit, operating performance, and property conditions, as well as ensuring the timely payment of property taxes and insurance. Through this monitoring process, the Company assesses the risk of each loan. When issues are identified, the severity of the issues are assessed and reviewed for possible credit impairment. If a loss is probable, an expected loss calculation is performed and an allowance is established for that loan based on the expected loss. The expected loss is calculated as the excess carrying value of a loan over either the present value of expected future cash flows discounted at the loan’s original effective interest rate, or the current estimated fair value of the loan’s underlying collateral. A loan may be subsequently charged off at such point that the Company no longer expects to receive cash payments, the present value of future expected payments of the renegotiated loan is less than the current principal balance, or at such time that the Company is party to foreclosure or bankruptcy proceedings associated with the borrower and does not expect to recover the principal balance of the loan.

A charge off is recorded by eliminating the allowance against the mortgage loan and recording the renegotiated loan or the collateral property related to the loan as investment real estate on the balance sheet, which is carried at the lower of the appraised fair value of the property or the unpaid principal balance of the loan, less estimated selling costs associated with the property:

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015
	to			to			As of
	June 30, 2015			January 31, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Beginning balance	$	—		$	5,720		$	3,130
Charge offs	—			(861		)	(675		)
Recoveries	(638		)	(2,359		)	(2,600		)
Provision	1,173			—			5,865
Ending balance	$	535		$	2,500		$	5,720

It is the Company’s policy to cease to carry accrued interest on loans that are over 90 days delinquent. For loans less than 90 days delinquent, interest is accrued unless it is determined that the accrued interest is not collectible. If a loan becomes over 90 days delinquent, it is the Company’s general policy to initiate foreclosure proceedings unless a workout arrangement to bring the loan current is in place. For loans subject to a pooling and servicing agreement, there are certain additional restrictions and/or requirements related to workout proceedings, and as such, these loans may have different attributes and/or circumstances affecting the status of delinquency or categorization of those in nonperforming status. An analysis of the delinquent loans is shown in the following chart.

					Greater
Successor Company	30-59 Days		60-89 Days		than 90 Days		Total
As of June 30, 2015	Delinquent		Delinquent		Delinquent		Delinquent
	(Dollars In Thousands)
Commercial mortgage loans	$	8,045	$	2,370	$	296	$	10,711
Number of delinquent commercial mortgage loans	5		2		1		8
Predecessor Company
As of December 31, 2014
Commercial mortgage loans	$	8,972	$	—	$	1,484	$	10,456
Number of delinquent commercial mortgage loans	4		—		1		5

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The Company’s commercial mortgage loan portfolio consists of mortgage loans that are collateralized by real estate. Due to the collateralized nature of the loans, any assessment of impairment and ultimate loss given a default on the loans is based upon a consideration of the estimated fair value of the real estate. The Company limits accrued interest income on impaired loans to 90 days of interest. Once accrued interest on the impaired loan is received, interest income is recognized on a cash basis. For information regarding impaired loans, please refer to the following chart:

			Unpaid				Average		Interest		Cash Basis
Successor Company	Recorded		Principal		Related		Recorded		Income		Interest
As of June 30, 2015	Investment		Balance		Allowance		Investment		Recognized		Income
	(Dollars In Thousands)
Commercial mortgage loans:
With no related allowance recorded	$	9,022	$	12,243	$	—	$	1,504	$	199	$	168
With an allowance recorded	1,500		2,035		535		1,500		31		31
Predecessor Company
As of December 31, 2014
Commercial mortgage loans:
With no related allowance recorded	$	—	$	—	$	—	$	—	$	—	$	—
With an allowance recorded	19,632		20,603		5,720		3,272		1,224		1,280

Mortgage loans that were modified in a troubled debt restructuring were as follows:

		Pre-Modification		Post-Modification
		Outstanding		Outstanding
Successor Company	Number of	Recorded		Recorded
As of June 30, 2015	Contracts	Investment		Investment
		(Dollars In Thousands)
Troubled debt restructuring:
Commercial mortgage loans	1	$	2,035	$	1,500
Predecessor Company
As of December 31, 2014
Troubled debt restructuring:
Commercial mortgage loans	6	$	28,648	$	19,593

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7.DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED

Deferred policy acquisition costs

The balances and changes in DAC are as follows:

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015
	to			to			As of
	June 30, 2015			January 31, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Balance, beginning of period	$	—		$	2,647,980		$	2,721,687
Capitalization of commissions, sales, and issue expenses	130,346			22,513			288,592
Amortization	(7,750		)	1,117			(195,605		)
Change in unrealized investment gains and losses	4,073			(96,830		)	(166,694		)
Balance, end of period	$	126,669		$	2,574,780		$	2,647,980

Value of business acquired

The balances and changes in VOBA are as follows:

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015
	to			to			As of
	June 30, 2015			January 31, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Balance, beginning of period	$	1,276,886		$	646,590		$	848,528
Amortization	(60,241		)	(5,189		)	(61,704		)
Change in unrealized investment gains and losses	50,612			(79,418		)	(140,234		)
Balance, end of period	$	1,267,257		$	561,983		$	646,590

As of February 1, 2015, the existing deferred acquisition costs (“DAC”) and VOBA balance was written off in conjunction with the merger previously disclosed in Note 3, Dai-ichi Merger and in accordance with ASC Topic 805 — Business Combinations.

Concurrently, a VOBA asset was created representing the actuarial estimated present value of future cash flows from the Company’s insurance policies and investment contracts in-force on the date of the Merger.

The expected amortization of VOBA for the next five years is as follows:

	Expected
Years	Amortization
	(Dollars In Thousands)
2015	$	75,180
2016	141,346
2017	131,356
2018	116,146
2019	97,272

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8.GOODWILL

During the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company decreased its goodwill balance by approximately $0.3 million. The decrease for the period of the Predecessor Company was due to an adjustment in the Acquisitions segment related to tax benefits realized during the period on the portion of tax goodwill in excess of GAAP basis goodwill. The goodwill balances associated with the Predecessor Company were replaced with newly established goodwill balances in conjunction with the Dai-ichi Merger, in accordance with ASC Topic 850, as described below.

As permitted by ASC Topic 805, Business Combinations, the Company measured its assets and liabilities at fair value on the date of the merger, February 1, 2015. The purchase price in excess of the fair value of assets and liabilities of the Company resulted in the establishment of goodwill as of the date of the merger. As of February 1, 2015 (Successor Company), the Company established an aggregate goodwill balance of $735.7 million. Refer to Note 3, Dai-ichi Merger, for more information related to the Successor Company goodwill. There has been no change in the goodwill during the period of February 1, 2015 to June 30, 2015 (Successor Company).

Accounting for goodwill requires an estimate of the future profitability of the associated lines of business to assess the recoverability of the capitalized acquisition goodwill. The Company evaluates the carrying value of goodwill at the segment (or reporting unit) level at least annually and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to: 1) a significant adverse change in legal factors or in business climate, 2) unanticipated competition, or 3) an adverse action or assessment by a regulator. When evaluating whether goodwill is impaired, the Company first determines through qualitative analysis whether relevant events and circumstances indicate that it is more likely than not that segment goodwill balances are impaired as of the measurement date. If it is determined that it is more likely than not that impairment exists, the Company compares its estimate of the fair value of the reporting unit to which the goodwill is assigned to the reporting unit’s carrying amount, including goodwill. The Company utilizes a fair value measurement (which includes a discounted cash flows analysis) to assess the carrying value of the reporting units in consideration of the recoverability of the goodwill balance assigned to each reporting unit as of the measurement date. The Company’s material goodwill balances are attributable to certain of its operating segments (which are each considered to be reporting units). The cash flows used to determine the fair value of the Company’s reporting units are dependent on a number of significant assumptions. The Company’s estimates, which consider a market participant view of fair value, are subject to change given the inherent uncertainty in predicting future results and cash flows, which are impacted by such things as policyholder behavior, competitor pricing, capital limitations, new product introductions, and specific industry and market conditions. Additionally, the discount rate used is based on the Company’s judgment of the appropriate rate for each reporting unit based on the relative risk associated with the projected cash flows. As of June 30, 2015 (Successor Company) and for the period February 1, 2015 through June 30, 2015 (Successor Company), the Company did not identify any events or circumstances which would indicate that the fair value of its operating segments would have declined below their book value, either individually or in the aggregate. Accordingly, no impairment to the Company’s goodwill balance has been recorded.

9.DEBT AND OTHER OBLIGATIONS

Debt and Subordinated Debt Securities

In conjunction with the Merger and in accordance with ASC Topic 805, the Company adjusted the carrying value of debt to fair value as of the date of the Merger, February 1, 2015. This resulted in the Company establishing premiums and discounts on its outstanding debt, subordinated debentures and non-recourse funding obligations. The carrying value of the Company’s revolving line of credit approximates fair value due the nature of the borrowings and the fact the Company pays a variable rate of interest that reflects current market conditions. The fair value of the Company’s senior notes, subordinated debt, non-recourse funding obligations associated with Golden Gate II Captive Insurance Company and MONY Life Insurance Company, were determined using market prices as of February 1, 2015. The fair value of the Golden Gate V non-recourse funding obligation was determined using a discounted cash flow model with inputs derived from comparable financial instruments. The premiums and discounts established as of February 1, 2015 are amortized over the expected life of the instruments using the effective interest method. The

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amortization of premiums and discounts are recorded as a component of interest expense and are recorded in “Other operating expenses” on the Company’s Consolidated Condensed Statements of Income.

Debt and subordinated debt securities are summarized as follows:

	Successor		Predecessor
	Company		Company
	As of		As of
	June 30, 2015		December 31, 2014
	(Dollars In Thousands)		(Dollars In Thousands)
Debt (year of issue):
Revolving Line of Credit	$	545,000	$	450,000
6.40% Senior Notes (2007), due 2018	165,625		150,000
7.375% Senior Notes (2009), due 2019	482,183		400,000
8.45% Senior Notes (2009), due 2039	469,931		300,000
	$	1,662,739	$	1,300,000
Subordinated debt securities (year of issue):
6.125% Subordinated Debentures (2004), due 2034, callable 2009	$	—	$	103,093
6.25% Subordinated Debentures (2012), due 2042, callable 2017	298,659		287,500
6.00% Subordinated Debentures (2012), due 2042, callable 2017	153,765		150,000
	$	452,424	$	540,593

During the period of February 1, 2015 to June 30, 2015 (Successor Company), the Company called and redeemed the entire $103.1 million of outstanding principal amount of the Company’s 6.125% Subordinated Debentures due 2034.

Under a revolving line of credit arrangement that was in effect until February 2, 2015 (the “Credit Facility”), the Company had the ability to borrow on an unsecured basis up to an aggregate principal amount of $750 million. The Company had the right in certain circumstances to request that the commitment under the Credit Facility be increased up to a maximum principal amount of $1.0 billion. Balances outstanding under the Credit Facility accrued interest at a rate equal to, at the option of the Borrowers, (i) LIBOR plus a spread based on the ratings of the Company’s senior unsecured long-term debt (“Senior Debt”), or (ii) the sum of (A) a rate equal to the highest of (x) the Administrative Agent’s prime rate, (y) 0.50% above the Federal Funds rate, or (z) the one-month LIBOR plus 1.00% and (B) a spread based on the ratings of our Senior Debt. The Credit Facility also provided for a facility fee at a rate, 0.175%, that could vary with the ratings of the Company’s Senior Debt and that was calculated on the aggregate amount of commitments under the Credit Facility, whether used or unused. The Credit Facility provided that the Company was liable for the full amount of any obligations for borrowings or letters of credit, including those of PLICO, under the Credit Facility. The maturity date of the Credit Facility was July 17, 2017. The Company was not aware of any non-compliance with the financial debt covenants of the Credit Facility as of December 31, 2014 (Predecessor Company). There was an outstanding balance of $450.0 million bearing interest at a rate of LIBOR plus 1.20% under the Credit Facility as of December 31, 2014 (Predecessor Company). As of December 31, 2014 (Predecessor Company), PLICO had used $55.0 million of borrowing capacity by executing a Letter of Credit under the Credit Facility for the benefit of an affiliated captive reinsurance subsidiary of the Company. This Letter of Credit had not been drawn upon as of December 31, 2014 (Predecessor Company).

On February 2, 2015, the Company amended and restated the Credit Facility (the “2015 Credit Facility”). Under the 2015 Credit Facility, the Company has the ability to borrow on an unsecured basis up to an aggregate principal amount of $1.0 billion. The Company has the right in certain circumstances to request that the commitment under the 2015 Credit Facility be increased up to a maximum principal amount of $1.25 billion. Balances outstanding under the 2015 Credit Facility accrue interest at a rate equal to, at the option of the Borrowers, (i) LIBOR plus a spread based on the ratings of the Company’s Senior Debt, or (ii) the sum of (A) a rate equal to the highest of (x) the Administrative Agent’s prime rate, (y) 0.50% above the Federal Funds rate, or (z) the one-month LIBOR plus 1.00% and (B) a spread based on the ratings of our Senior Debt. The 2015 Credit Facility also provided for a facility fee at a rate that varies with the ratings of the Company’s Senior Debt and that is calculated on the aggregate amount of commitments under the 2015 Credit Facility, whether used or unused. The initial facility fee rate was 0.15% on

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February 2, 2015, and was adjusted to 0.125% upon our subsequent ratings upgrade on February 2, 2015. The 2015 Credit Facility provides that the Company is liable for the full amount of any obligations for borrowings or letters of credit, including those of PLICO, under the 2015 Credit Facility. The maturity date of the 2015 Credit Facility is February 2, 2020. The Company is not aware of any non-compliance with the financial debt covenants of the Credit Facility as of February 2, 2015 or the 2015 Credit Facility as of June 30, 2015 (Successor Company). There was an outstanding balance of $545.0 million bearing interest at a rate of LIBOR plus 1.00% as June 30, 2015 (Successor Company). As of June 30, 2015 (Successor Company), the $55.0 million Letter of Credit executed by PLICO was no longer issued and outstanding.

Non-Recourse Funding Obligations

Golden Gate Captive Insurance Company

Golden Gate Captive Insurance Company (“Golden Gate”), a South Carolina special purpose financial captive insurance company and wholly owned subsidiary of PLICO, had three series of non-recourse funding obligations with a total outstanding balance of $800 million as of June 30, 2015 (Successor Company). The Company holds the entire outstanding balance of non-recourse funding obligation. The Series A1 non-recourse funding obligations have a balance of $400 million and accrue interest at 7.375%, the Series A2 non-recourse funding obligations have a balance of $100 million and accrue interest at 8.00%, and the Series A3 non-recourse funding obligations have a balance of $300 million and accrue interest at 8.45%.

Golden Gate II Captive Insurance Company

Golden Gate II Captive Insurance Company (“Golden Gate II”), a South Carolina special purpose financial captive insurance company wholly owned by PLICO, had $575 million of outstanding non-recourse funding obligations as of June 30, 2015 (Successor Company). These outstanding non-recourse funding obligations were issued to special purpose trusts, which in turn issued securities to third parties. Certain of our affiliates own a portion of these securities. As of June 30, 2015 (Successor Company), securities related to $144.9 million of the outstanding balance of the non-recourse funding obligations were held by external parties and securities related to $430.1 million of the non-recourse funding obligations were held by the Company and its affiliates. The Company has entered into certain support agreements with Golden Gate II obligating the Company to make capital contributions or provide support related to certain of Golden Gate II’s expenses and in certain circumstances, to collateralize certain of the Company’s obligations to Golden Gate II. These support agreements provide that amounts would become payable by the Company to Golden Gate II if its annual general corporate expenses were higher than modeled amounts or if Golden Gate II’s investment income on certain investments or premium income was below certain actuarially determined amounts. As of June 30, 2015 (Successor Company), no payments have been made under these agreements, however, certain support agreement obligations to Golden Gate II of approximately $1.9 million have been collateralized by the Company. Re-evaluation and, if necessary, adjustments of any support agreement collateralization amounts occur annually during the first quarter pursuant to the terms of the support agreements.

Golden Gate V Vermont Captive Insurance Company

On October 10, 2012, Golden Gate V, a Vermont special purpose financial insurance company, and Red Mountain, both wholly owned subsidiaries of PLICO, entered into a 20-year transaction to finance up to $945 million of “AXXX” reserves related to a block of universal life insurance policies with secondary guarantees issued by our direct wholly owned subsidiary PLICO and indirect wholly owned subsidiary, West Coast Life Insurance Company (“WCL”). Golden Gate V issued non-recourse funding obligations to Red Mountain, and Red Mountain issued a note with an initial principal amount of $275 million, increasing to a maximum of $945 million in 2027, to Golden Gate V for deposit to a reinsurance trust supporting Golden Gate V’s obligations under a reinsurance agreement with WCL, pursuant to which WCL cedes liabilities relating to the policies of WCL and retrocedes liabilities relating to the policies of PLICO. Through the structure, Hannover Life Reassurance Company of America (“Hannover Re”), the ultimate risk taker in the transaction, provides credit enhancement to the Red Mountain note for the 20-year term in exchange for a fee. The transaction is “non-recourse” to Golden Gate V, Red Mountain, WCL, PLICO and the Company, meaning that none of these companies are liable for the reimbursement of any credit enhancement payments required to be made. As of June 30, 2015 (Successor Company), the principal balance of the Red Mountain note was $470 million. Future scheduled capital contributions to prefund credit enhancement fees amount to approximately $139.6 million and will be

34

paid in annual installments through 2031. In connection with the transaction, the Company has entered into certain support agreements under which it guarantees or otherwise supports certain obligations of Golden Gate V or Red Mountain. The support agreements provide that amounts would become payable by the Company if Golden Gate V’s annual general corporate expenses were higher than modeled amounts or in the event write-downs due to other-than-temporary impairments on assets held in certain accounts exceed defined threshold levels. Additionally, the Company has entered into separate agreements to indemnify Golden Gate V with respect to material adverse changes in non-guaranteed elements of insurance policies reinsured by Golden Gate V, and to guarantee payment of certain fee amounts in connection with the credit enhancement of the Red Mountain note. As of June 30, 2015 (Successor Company), no payments have been made under these agreements.

In connection with the transaction outlined above, Golden Gate V had a $470 million outstanding non-recourse funding obligation as of June 30, 2015 (Successor Company). This non-recourse funding obligation matures in 2037, has scheduled increases in principal to a maximum of $945 million, and accrues interest at a fixed annual rate of 6.25%.

Non-recourse funding obligations outstanding as of June 30, 2015 (Successor Company), on a consolidated basis, are shown in the following table:

				Year-to-Date
			Maturity	Weighted-Avg
Issuer	Balance		Year	Interest Rate
	(Dollars In Thousands)
Golden Gate II Captive Insurance Company	$	118,274	2052	1.32	%
Golden Gate V Vermont Captive Insurance Company(1)	535,474		2037	5.12	%
MONY Life Insurance Company(1)	2,551		2024	6.19	%
Total	$	656,299

(1) Fixed rate obligations

During the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company did not repurchase any of its outstanding non-recourse funding obligations. For the six months ended June 30, 2014 (Predecessor Company), the Company repurchased $18.3 million of its outstanding non-recourse funding obligations, at a discount. The repurchase resulted in a $4.6 million pre-tax gain for the Company.

Letters of Credit

Golden Gate III Vermont Captive Insurance Company (“Golden Gate III”), a Vermont special purpose financial insurance company and wholly owned subsidiary of PLICO, is party to a Reimbursement Agreement (the “Reimbursement Agreement”) with UBS AG, Stamford Branch (“UBS”), as issuing lender. Under the original Reimbursement Agreement, dated April 23, 2010, UBS issued a letter of credit (the “LOC”) in the initial amount of $505 million to a trust for the benefit of WCL. The Reimbursement Agreement was subsequently amended and restated effective November 21, 2011 (the “First Amended and Restated Reimbursement Agreement”), to replace the existing LOC with one or more letters of credit from UBS, and to extend the maturity date from April 1, 2018, to April 1, 2022. On August 7, 2013, Golden Gate III entered into a Second Amended and Restated Reimbursement Agreement with UBS (the “Second Amended and Restated Reimbursement Agreement”), which amended and restated the First Amended and Restated Reimbursement Agreement. Under the Second and Amended and Restated Reimbursement Agreement a new LOC in an initial amount of $710 million was issued by UBS in replacement of the existing LOC issued under the First Amended and Restated Reimbursement Agreement. The term of the LOC was extended from April 1, 2022 to October 1, 2023, subject to certain conditions being satisfied including scheduled capital contributions being made to Golden Gate III by one of its affiliates. The maximum stated amount of the LOC was increased from $610 million to $720 million in 2015 if certain conditions had been met. On June 25, 2014, Golden Gate III entered into a Third Amended and Restated Reimbursement Agreement with UBS (the “Third Amended and Restated Reimbursement Agreement”), which amended and restated the Second Amended and Restated Reimbursement Agreement. Under the Third Amended and Restated Reimbursement Agreement, a new LOC in an initial amount of $915 million was issued by UBS in replacement of the existing LOC issued under the Second Amended and Restated Reimbursement Agreement. The term of the LOC was extended from October 1, 2023 to April 1, 2025, subject to

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certain conditions being satisfied including scheduled capital contributions being made to Golden Gate III by one of its affiliates. The maximum stated amount of the LOC was increased from $720 million to $935 million in 2015 if certain conditions are met. The LOC is held in trust for the benefit of WCL, and supports certain obligations of Golden Gate III to WCL under an indemnity reinsurance agreement originally effective April 1, 2010, as amended and restated on November 21, 2011, and as further amended and restated on August 7, 2013 and on June 25, 2014 to include additional blocks of policies, and pursuant to which WCL cedes liabilities relating to the policies of WCL and retrocedes liabilities relating to the policies of PLICO. The LOC balance was $935 million as of June 30, 2015 (Successor Company). The term of the LOC is expected to be approximately 15 years from the original issuance date. This transaction is “non- recourse” to WCL, PLICO, and the Company, meaning that none of these companies other than Golden Gate III are liable for reimbursement on a draw of the LOC. The Company has entered into certain support agreements with Golden Gate III obligating the Company to make capital contributions or provide support related to certain of Golden Gate III’s expenses and in certain circumstances, to collateralize certain of the Company’s obligations to Golden Gate III. Future scheduled capital contributions amount to approximately $122.5 million and will be paid in three installments with the last payment occurring in 2021, and these contributions may be subject to potential offset against dividend payments as permitted under the terms of the Third Amended and Restated Reimbursement Agreement. The support agreements provide that amounts would become payable by the Company to Golden Gate III if its annual general corporate expenses were higher than modeled amounts or if specified catastrophic losses occur during defined time periods with respect to the policies reinsured by Golden Gate III. Pursuant to the terms of an amended and restated letter agreement with UBS, the Company has continued to guarantee the payment of fees to UBS as specified in the Third Amended and Restated Reimbursement Agreement. As of June 30, 2015 (Successor Company), no payments have been made under these agreements.

Golden Gate IV Vermont Captive Insurance Company (“Golden Gate IV”), a Vermont special purpose financial insurance company and wholly owned subsidiary of PLICO, is party to a Reimbursement Agreement with UBS AG, Stamford Branch, as issuing lender. Under the Reimbursement Agreement, dated December 10, 2010, UBS issued an LOC in the initial amount of $270 million to a trust for the benefit of WCL. The LOC balance has increased, in accordance with the terms of the Reimbursement Agreement, during each quarter of 2015 and was $770 million as of June 30, 2015 (Successor Company). Subject to certain conditions, the amount of the LOC will be periodically increased up to a maximum of $790 million in 2016. The term of the LOC is expected to be 12 years from the original issuance date (stated maturity of December 30, 2022). The LOC was issued to support certain obligations of Golden Gate IV to WCL under an indemnity reinsurance agreement, pursuant to which WCL cedes liabilities relating to the policies of WCL and retrocedes liabilities relating to the policies of PLICO. This transaction is “non-recourse” to WCL, PLICO, and the Company, meaning that none of these companies other than Golden Gate IV are liable for reimbursement on a draw of the LOC. The Company has entered into certain support agreements with Golden Gate IV obligating the Company to make capital contributions or provide support related to certain of Golden Gate IV’s expenses and in certain circumstances, to collateralize certain of the Company’s obligations to Golden Gate IV. The support agreements provide that amounts would become payable by the Company to Golden Gate IV if its annual general corporate expenses were higher than modeled amounts or if specified catastrophic losses occur during defined time periods with respect to the policies reinsured by Golden Gate IV. The Company has also entered into a separate agreement to guarantee the payments of LOC fees under the terms of the Reimbursement Agreement. As of June 30, 2015 (Successor Company), no payments have been made under these agreements.

Repurchase Program Borrowings

While the Company anticipates that the cash flows of its operating subsidiaries will be sufficient to meet its investment commitments and operating cash needs in a normal credit market environment, the Company recognizes that investment commitments scheduled to be funded may, from time to time, exceed the funds then available. Therefore, the Company has established repurchase agreement programs for certain of its insurance subsidiaries to provide liquidity when needed. The Company expects that the rate received on its investments will equal or exceed its borrowing rate. Under this program, the Company may, from time to time, sell an investment security at a specific price and agree to repurchase that security at another specified price at a later date. These borrowings are typically for a term less than 90 days. The market value of securities to be repurchased is monitored and collateral levels are adjusted where appropriate to protect the counterparty against credit exposure. Cash received is invested in fixed maturity securities, and the agreements provided for net settlement in the event of default or on termination of the agreements. As of June 30, 2015 (Successor Company), the fair value of securities pledged under the repurchase program was $657.4 million and the repurchase obligation of $602.2 million was included in the Company’s consolidated condensed balance sheets

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(at an average borrowing rate of 21 basis points). During the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the maximum balance outstanding at any one point in time related to these programs was $646.7 million and $175.0 million, respectively. The average daily balance was $507.2 million and $77.4 million (at an average borrowing rate of 17 and 16 basis points, respectively) during the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), respectively. As of December 31, 2014 (Predecessor Company), the Company had a $50.0 million outstanding balance related to such borrowings. During 2014, the maximum balance outstanding at any one point in time related to these programs was $633.7 million. The average daily balance was $470.4 million (at an average borrowing rate of 11 basis points) during the year ended December 31, 2014 (Predecessor Company).

The following table provides the amount of collateral pledged for repurchase agreements, grouped by asset class, as of June 30, 2015 (Successor Company):

Repurchase Agreements, Securities Lending Transactions, and Repurchase-to-Maturity Transactions

 Accounted for as Secured Borrowings

	Remaining Contractual Maturity of the Agreements
	As of June 30, 2015 (Successor Company)
	(Dollars In Thousands)
	Overnight and						Greater Than
	Continuous		Up to 30 days		30-90 days		90 days		Total
Repurchase agreements and repurchase-to-maturity transactions
U.S. Treasury and agency securities	$	98,345	$	—	$	—	$	—	$	98,345
State and municipal securities	—		—		—		—		—
Other asset-backed securities	—		—		—		—		—
Corporate securities	—		107,781		—		—		107,781
Equity securities	—		—		—		—		—
Non-U.S. sovereign debt	—		—		—		—		—
Mortgage loans	451,246		—		—		—		451,246
Other asset-backed securities	—		—		—		—		—
Total borrowings	$	549,591	$	107,781	$	—	$	—	$	657,372

10.COMMITMENTS AND CONTINGENCIES

The Company has entered into indemnity agreements with each of its current directors other than those that are employees of Dai-ichi Life that provide, among other things and subject to certain limitations, a contractual right to indemnification to the fullest extent permissible under the law. The Company has agreements with certain of its officers providing up to $10 million in indemnification. These obligations are in addition to the customary obligation to indemnify officers and directors contained in the Company’s governance documents.

Under insurance guaranty fund laws, in most states insurance companies doing business therein can be assessed up to prescribed limits for policyholder losses incurred by insolvent companies. In addition, from time to time, companies may be asked to contribute amounts beyond prescribed limits. Most insurance guaranty fund laws provide that an assessment may be excused or deferred if it would threaten an insurer’s own financial strength. The Company does not believe its insurance guaranty fund assessments will be materially different from amounts already provided for in the financial statements.

A number of civil jury verdicts have been returned against insurers, broker dealers and other providers of financial services involving sales, refund or claims practices, alleged agent misconduct, failure to properly supervise representatives, relationships with agents or persons with whom the insurer does business, and other matters. Often these lawsuits have resulted in the award of substantial judgments that are disproportionate to the actual damages, including material amounts of punitive and non-economic compensatory damages. In some states, juries, judges, and

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arbitrators have substantial discretion in awarding punitive non-economic compensatory damages which creates the potential for unpredictable material adverse judgments or awards in any given lawsuit or arbitration. Arbitration awards are subject to very limited appellate review. In addition, in some class action and other lawsuits, companies have made material settlement payments. Publicly held companies in general and the financial services and insurance industries in particular are also sometimes the target of law enforcement and regulatory investigations relating to the numerous laws and regulations that govern such companies. Some companies have been the subject of law enforcement or regulatory actions or other actions resulting from such investigations. The Company, in the ordinary course of business, is involved in such matters.

The Company establishes liabilities for litigation and regulatory actions when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. For matters where a loss is believed to be reasonably possible, but not probable, no liability is established. For such matters, the Company may provide an estimate of the possible loss or range of loss or a statement that such an estimate cannot be made. The Company reviews relevant information with respect to litigation and regulatory matters on a quarterly and annual basis and updates its established liabilities, disclosures and estimates of reasonably possible losses or range of loss based on such reviews.

After the entry into the Merger Agreement on June 3, 2014, four lawsuits were filed against the Company, our then current directors, Dai-ichi Life and DL Investment (Delaware), Inc. on behalf of alleged Company shareowners. On June 11, 2014, a putative class action lawsuit styled Edelman, et al. v. Protective Life Corporation, et al., Civil Action No. 01-CV- 2014-902474.00, was filed in the Circuit Court of Jefferson County, Alabama. On July 30, 2014, the plaintiff in Edelman filed an amended complaint. Three putative class action lawsuits were filed in the Court of Chancery of the State of Delaware, Martin, et al. v. Protective Life Corporation, et al., Civil Action No. 9794-CB, filed June 19, 2014, Leyendecker, et al. v. Protective Life Corporation, et al., Civil Action No. 9931-CB, filed July 22, 2014 and Hilburn, et al. v. Protective Life Corporation, et al., Civil Action No. 9937-CB, filed July 23, 2014. The Delaware Court of Chancery consolidated the Martin, Leyendecker, and Hilburn actions under the caption In re Protective Life Corp. Stockholders Litigation, Consolidated Civil Action No. 9794-CB, designated the Hilburn complaint as the operative consolidated complaint (the “Delaware Action”) and appointed Charlotte Martin, Samuel J. Leyendecker, Jr., and Deborah J. Hilburn to serve as co-lead plaintiffs. These lawsuits alleged that our Board of Directors breached its fiduciary duties to the Company’s shareowners, that the Merger involved an unfair price, an inadequate sales process, and unreasonable deal protection devices that purportedly precluded competing offers, and that the preliminary proxy statement filed with the SEC on July 10, 2014 failed to disclose purportedly material information. The complaints also alleged that the Company, Dai-ichi Life and DL Investment (Delaware), Inc. aided and abetted those alleged breaches of fiduciary duties. The complaints sought injunctive relief, including enjoining or rescinding the Merger, and attorneys’ and other fees and costs, in addition to other relief. The Delaware Action also sought an award of unspecified damages.

With respect to the Edelman lawsuit, on September 5, 2014, the court held a hearing to address motions to dismiss the lawsuit filed on behalf of the Company, the members of the Company’s Board, and DL Investment (Delaware), Inc. On September 19, 2014, the court granted those motions and dismissed the Edelman lawsuit in its entirety and with prejudice, pending a possible appeal by the plaintiff. With respect to the Delaware Action, on September 24, 2014, the Company, each of the members of the Company’s Board, Dai-ichi Life, and DL Investment (Delaware), Inc. entered into a Memorandum of Understanding (the “MOU”) with the plaintiffs in that case, which set forth the parties’ agreement in principle for a settlement of the Delaware Action. As set forth in the MOU, the Company, the members of the Company’s Board, Dai-ichi Life, and DL Investment (Delaware), Inc. agreed to the settlement solely to eliminate the burden, expense, distraction, and uncertainties inherent in further litigation, and without admitting any liability or wrongdoing. The MOU contemplated that the parties would seek to enter into a stipulation of settlement providing for the certification of a mandatory non opt-out class, for settlement purposes only, to include any and all record and beneficial owners of shares (excluding the members of the Company’s Board and their immediate family members, any entity in which any member of the Company’s Board has a controlling interest, and any successors in interest thereto) that held shares at any time during the period beginning on June 3, 2014, through the date of consummation or termination of the Merger, including any and all of their respective successors in interest, successors, predecessors in interest, representatives, trustees, executors, administrators, heirs, assigns, or transferees, immediate and remote, and any person or entity acting for or on behalf of, or claiming under, any of them, together with their predecessors, successors and assigns, and a global release of claims relating to the Merger as set forth in the MOU. As part of the settlement, the Company agreed to make certain additional disclosures related to the Merger which are

38

set forth in the Company’s Form 8-K filed on September 25, 2014 and which supplement the information contained in the Company’s definitive proxy statement filed with the SEC on August 25, 2014, as amended on August 27, 2014. Nothing in the Form 8-K or stipulation of settlement shall be deemed an admission of the legal necessity or materiality of any of the disclosures set forth in the Form 8-K. The stipulation of settlement and release of all claims in the Delaware Action was approved by the Court of Chancery of the State of Delaware on June 16, 2015. The terms of the settlement had no effect on the consideration received by Company shareowners in connection with the completion of the Merger, and the amount of attorneys’ fees and expenses awarded to the plaintiffs’ counsel did not have a material impact upon the Company.

The Company was audited by the IRS and the IRS proposed favorable and unfavorable adjustments to the Company’s 2003 through 2007 reported taxable income. The Company protested certain unfavorable adjustments and sought resolution at the IRS’ Appeals Division. The case has followed normal procedure and is now under review at Congress’ Joint Committee on Taxation. The Company believes the matter will conclude within the next twelve months. If the IRS prevails on every issue that it identified in this audit, and the Company does not litigate these issues, then the Company will make an income tax payment of approximately $26.6 million. However, this payment, if it were to occur, would not materially impact the Company or its effective tax rate.

Through the acquisition of MONY by PLICO certain income tax credit carryforwards, which arose in MONY’s pre-acquisition tax years, transferred to the Company. This transfer was in accordance with the applicable rules of the Internal Revenue Code and the related Regulations. In spite of this transfer, AXA, the former parent of the consolidated income tax return group in which MONY was a member, retains the right to utilize these credits in the future to offset future increases in its 2010 through 2013 tax liabilities. The Company had determined that, based on all information known as of the acquisition date and through the March 31, 2014 reporting date, it was probable that a loss of the utilization of these carryforwards had been incurred. Due to indemnification received from AXA during the quarter ending June 30, 2014, the probability of loss of these carryforwards has been eliminated. Accordingly, in the table summarizing the fair value of net assets acquired from the Acquisition, the amount of the deferred tax asset from the credit carryforwards is no longer offset by a liability.

Certain of the Company’s insurance subsidiaries, as well as certain other insurance companies for which the Company has coinsured blocks of life insurance and annuity policies, are under audit for compliance with the unclaimed property laws of a number of states. The audits are being conducted on behalf of the treasury departments or unclaimed property administrators in such states. The focus of the audits is on whether there have been unreported deaths, maturities, or policies that have exceeded limiting age with respect to which death benefits or other payments under life insurance or annuity policies should be treated as unclaimed property that should be escheated to the state. The Company is presently unable to estimate the reasonably possible loss or range of loss that may result from the audits due to a number of factors, including uncertainty as to the legal theory or theories that may give rise to liability, the early stages of the audits being conducted, and, with respect to one block of life insurance policies that is co-insured by a subsidiary of the Company, uncertainty as to whether the Company or other companies are responsible for the liabilities, if any, arising in connection with such policies. The Company will continue to monitor the matter for any developments that would make the loss contingency associated with the audits probable or reasonably estimable.

Certain of the Company’s subsidiaries are under a targeted multi-state examination with respect to their claims paying practices and their use of the U.S. Social Security Administration’s Death Master File or similar databases (a “Death Database”) to identify unreported deaths in their life insurance policies, annuity contracts and retained asset accounts. There is no clear basis in previously existing law for requiring a life insurer to search for unreported deaths in order to determine whether a benefit is owed, and substantial legal authority exists to support the position that the prevailing industry practice was lawful. A number of life insurers, however, have entered into settlement or consent agreements with state insurance regulators under which the life insurers agreed to implement procedures for periodically comparing their life insurance and annuity contracts and retained asset accounts against a Death Database, treating confirmed deaths as giving rise to a death benefit under their policies, locating beneficiaries and paying them the benefits and interest, and escheating the benefits and interest as well as penalties to the state if the beneficiary could not be found. It has been publicly reported that the life insurers have paid administrative and/or examination fees to the insurance regulators in connection with the settlement or consent agreements. The Company believes it is reasonably possible that insurance regulators could demand from the Company administrative and/or examination fees relating to the targeted multi-state examination. Based on publicly reported payments by other life insurers, the Company estimates the range of such fees to be from $0 to $3.5 million.

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11.EMPLOYEE BENEFIT PLANS

Due to the Dai-ichi Life transaction, the Company re-measured all materially impacted benefit plans as of January 31, 2015 (Predecessor Company). Financial re-measurement was performed for the defined benefit pension plan, the unfunded excess benefit plan, and the postretirement life insurance plan as of January 31, 2015 (Predecessor Company). The January results for the retiree life plan were not material, and therefore, re-measurement was not deemed necessary for this plan. The Company has disclosed relevant financial information related to the applicable January 31, 2015 (Predecessor Company) re-measurements, as follows.

The following table presents the benefit obligation, fair value of plan assets, and the funded status of the Company’s defined benefit pension plan and unfunded excess benefit plan of January 31, 2015 (Predecessor Company) and December 31, 2014 (Predecessor Company). This table also includes the amounts not yet recognized as components of net periodic pension costs as of January 31, 2015 (Predecessor Company) and December 31, 2014 (Predecessor Company).

	Predecessor Company
	Defined Benefit						Unfunded Excess
	Pension Plan						Benefits Plan
	As of January 31, 2015			As of December 31, 2014			As of January 31, 2015			As of December 31, 2014
	(Dollars In Thousands)
Accumulated benefit obligation, end of period	$	262,290		$	249,453		$	49,251		$	47,368
Change in projected benefit obligation:
Projected benefit obligation at beginning of period	$	267,331		$	219,152		$	49,575		$	39,679
Service cost	974			9,411			95			954
Interest cost	1,002			10,493			140			1,696
Amendments	—			—			—			—
Actuarial (gain) or loss	12,384			38,110			1,555			9,153
Benefits paid	(592		)	(9,835		)	(122		)	(1,907		)
Projected benefit obligation at end of period	281,099			267,331			51,243			49,575
Change in plan assets:
Fair value of plan assets at beginning of period	203,772			180,173			—			—
Actual return on plan assets	(3,525		)	17,921			—			—
Employer contributions(1)	2,165			15,513			122			1,907
Benefits paid	(592		)	(9,835		)	(122		)	(1,907		)
Fair value of plan assets at end of period	201,820			203,772			—			—
After reflecting FASB guidance
Funded status	(79,279		)	(63,559		)	(51,243		)	(49,575		)
Amounts recognized in the balance sheet:
Other liabilities	(79,279		)	(63,559		)	(51,243		)	(49,575		)
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss	96,965			80,430			22,401			20,983
Prior service cost/(credit)	(1,001		)	(1,033		)	23			24
Total amounts recognized in AOCI	$	95,964		$	79,397		$	22,424		$	21,007

(1) Employer contributions disclosed are based on the Company’s fiscal filing year.

As of January 31, 2015 (Predecessor Company) and December 31, 2014 (Predecessor Company), the projected benefit obligation associated with the postretirement life insurance plan was $9.8 million and $9.3 million, respectively.

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As a result of the Merger on February 1, 2015, all unrecognized prior service costs or credits, actuarial gains or losses, and any remaining transition assets or obligations were not carried forward on the acquisition date. Therefore, the amounts presented in the “Amounts recognized in accumulated other comprehensive income” in the chart above were set to zero on the Merger date.

The benefit obligations as of January 31, 2015 (Predecessor Company) were determined based on the assumptions used in the 2014 year-end disclosures with the following exception:

	Defined Benefit		Unfunded Excess		Postretirement
	Pension Plan		Benefit Plan		Life Insurance Plan
Discount rate	3.55	%	3.26	%	3.79	%

Components of the net periodic benefit cost for the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the three and six months ended June 30, 2014 (Predecessor Company) are as follows:

	Successor										Predecessor
	Company										Company
	For The Three					February 1, 2015					January 1, 2015					For The Three					For The Six
	Months Ended					to					to					Months Ended					Months Ended
	June 30, 2015					June 30, 2015					January 31, 2015					June 30, 2014					June 30, 2014
	Defined			Unfunded		Defined			Unfunded		Defined			Unfunded		Defined			Unfunded		Defined			Unfunded
	Benefit			Excess		Benefit			Excess		Benefit			Excess		Benefit			Excess		Benefit			Excess
	Pension			Benefit		Pension			Benefit		Pension			Benefit		Pension			Benefit		Pension			Benefit
	Plan			Plan		Plan			Plan		Plan			Plan		Plan			Plan		Plan			Plan
	(Dollars In Thousands)										(Dollars In Thousands)
Service cost — benefits earned during the period	$	2,973		$	333	$	4,955		$	555	$	974		$	95	$	2,227		$	226	$	4,454		$	452
Interest cost on projected benefit obligation	2,433			408		4,055			680		1,002			140		2,587			406		5,174			812
Expected return on plan assets	(3,642		)	—		(6,070		)	—		(1,293		)	—		(3,065		)	—		(6,130		)	—
Amortization of prior service cost	—			—		—			—		(33		)	1		(98		)	3		(196		)	6
Amortization of actuarial losses	—			—		—			—		668			138		1,576			321		3,152			642
Total net periodic benefit cost	$	1,764		$	741	$	2,940		$	1,235	$	1,318		$	374	$	3,227		$	956	$	6,454		$	1,912

During the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company contributed $2.2 million to its defined benefit pension plan which was applied for the 2014 plan year. The Company did not contribute to the defined benefit pension plan during the period of February 1, 2015 to June 30, 2015 (Successor Company). The Company will continue to make contributions in future periods as necessary to at least satisfy minimum funding requirements. The Company may also make additional contributions in future periods to maintain an adjusted funding target attainment percentage (“AFTAP”) of at least 80% and to avoid certain Pension Benefit Guaranty Corporation (“PBGC”) reporting triggers.

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12.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, 2015 (Successor Company), January 31, 2015 (Predecessor Company) and December 31, 2014 (Predecessor Company).

Changes in Accumulated Other Comprehensive Income (Loss) by Component

							Total
							Accumulated
	Unrealized			Accumulated			Other
	Gains and Losses			Gain and Loss			Comprehensive
Successor Company	on Investments(2)			Derivatives			Income (Loss)
	(Dollars In Thousands, Net of Tax)
Beginning Balance, February 1, 2015	$	—		$	—		$	—
Other comprehensive income (loss) before reclassifications	(894,507		)	(86		)	(894,593		)
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings	(4,566		)	—			(4,566		)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	1,301			86			1,387
Net current-period other comprehensive income (loss)	(897,772		)	—			(897,772		)
Ending Balance, June 30, 2015	$	(897,772	)	$	—		$	(897,772	)

(1) See Reclassification table below for details.

(2) As of June 30, 2015 net unrealized losses reported in AOCI were offset by $493.0 million due to the impact those net unrealized losses would have had on certain of the Company’s insurance assets and liabilities if the net unrealized losses had been recognized in net income.

Changes in Accumulated Other Comprehensive Income (Loss) by Component

										Total
										Accumulated
	Unrealized			Accumulated			Minimum			Other
	Gains and Losses			Gain and Loss			Pension Liability			Comprehensive
Predecessor Company	on Investments(2)			Derivatives			Adjustment			Income (Loss)
	(Dollars In Thousands, Net of Tax)
Beginning Balance, December 31, 2014	$	1,484,169		$	(82	)	$	(66,011	)	$	1,418,076
Other comprehensive income (loss) before reclassifications	482,370			9			(12,527		)	469,852
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings	(243		)	—			—			(243		)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	(4,166		)	23			502			(3,641		)
Net current-period other comprehensive income (loss)	477,961			32			(12,025		)	465,968
Ending Balance, January 31, 2015	$	1,962,130		$	(50	)	$	(78,036	)	$	1,884,044

(1) See Reclassification table below for details.

(2) As of January 31, 2015 and December 31, 2014, net unrealized losses reported in AOCI were offset by $(492.6) million and $(504.4) million, respectively, due to the impact those net unrealized losses would have had on certain of the Company’s insurance assets and liabilities if the net unrealized losses had been recognized in net income.

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Changes in Accumulated Other Comprehensive Income (Loss) by Component

										Total
										Accumulated
	Unrealized			Accumulated			Minimum			Other
	Gains and Losses			Gain and Loss			Pension Liability			Comprehensive
Predecessor Company	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	986,958			(2		)	(27,395		)	959,561
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings	3,498			—			—			3,498
Amounts reclassified from accumulated other comprehensive income (loss)(1)	(45,290		)	1,155			5,086			(39,049		)
Net current-period other comprehensive income (loss)	945,166			1,153			(22,309		)	924,010
Ending Balance, December 31, 2014	$	1,484,169		$	(82	)	$	(66,011	)	$	1,418,076

(1) See Reclassification table below for details.

(2) As of December 31, 2014 and 2013, net unrealized losses reported in AOCI were offset by $(504.4) million and $(189.8) million, respectively, due to the impact those net unrealized losses would have had on certain of the Company’s insurance assets and liabilities if the net unrealized losses had been recognized in net income.

The following tables summarize the reclassifications amounts out of AOCI for the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the three and six months ended June 30, 2014 (Predecessor Company).

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
Successor Company	Other Comprehensive			Affected Line Item in the
For The Three Months Ended June 30, 2015	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(41	)	Benefits and settlement expenses, net of reinsurance ceded
	(41		)	Total before tax
	14			Tax (expense) or benefit
	$	(27	)	Net of tax
Unrealized gains and losses on available-for-sale securities
Net investment gains (losses)	$	3,360		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(5,734		)	Net impairment losses recognized in earnings
	(2,374		)	Total before tax
	831			Tax (expense) or benefit
	$	(1,543	)	Net of tax

(1) See Note 16, Derivative Financial Instruments for additional information.

43

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
Successor Company	Other Comprehensive			Affected Line Item in the
February 1, 2015 to June 30, 2015	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(131	)	Benefits and settlement expenses, net of reinsurance ceded
	(131		)	Total before tax
	45			Tax (expense) or benefit
	$	(86	)	Net of tax
Unrealized gains and losses on available-for-sale securities
Net investment gains (losses)	$	3,733		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(5,734		)	Net impairment losses recognized in earnings
	(2,001		)	Total before tax
	700			Tax (expense) or benefit
	$	(1,301	)	Net of tax

(1) See Note 16, Derivative Financial Instruments for additional information.

44

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
Predecessor Company	Other Comprehensive			Affected Line Item in the
January 1, 2015 to January 31, 2015	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(36	)	Benefits and settlement expenses, net of reinsurance ceded
	(36		)	Total before tax
	13			Tax (expense) or benefit
	$	(23	)	Net of tax
Unrealized gains and losses on available-for-sale securities
Net investment gains (losses)	$	6,891		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(481		)	Net impairment losses recognized in earnings
	6,410			Total before tax
	(2,244		)	Tax (expense) or benefit
	$	4,166		Net of tax
Postretirement benefits liability adjustment
Amortization of net actuarial gain/(loss)	$	(808	)	Other operating expenses
Amortization of prior service credit/(cost)	31			Other operating expenses
Amortization of transition asset/(obligation)	5			Other operating expenses
	(772		)	Total before tax
	270			Tax (expense) or benefit
	$	(502	)	Net of tax

(1) See Note 16, Derivative Financial Instruments for additional information.

45

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
Predecessor Company	Other Comprehensive			Affected Line Item in the
For The Three Months Ended June 30, 2014	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
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 16, Derivative Financial Instruments for additional information.

46

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
Predecessor Company	Other Comprehensive			Affected Line Item in the
For The Six Months Ended June 30, 2014	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
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 16, Derivative Financial Instruments for additional information.

13.EARNINGS PER SHARE

As of February 1, 2015, the Company became a wholly owned subsidiary of Dai-ichi Life, and for the period of February 1, 2015 to June 30, 2015 (Successor Company), there was no market for the Company’s common stock and therefore the Company will no longer disclose earnings per share information.

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period, including shares issuable under various deferred compensation plans. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and dilutive potential common shares outstanding during the period, assuming the shares were not anti-dilutive, including shares issuable under various stock-based compensation plans and stock purchase contracts.

47

A reconciliation of the numerators and denominators of the basic and diluted earnings per share is presented below for the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the three and six months ended June 30, 2014 (Predecessor Company):

	Predecessor Company
	January 1, 2015		For The Three		For The Six
	to		Months Ended		Months Ended
	January 31, 2015		June 30, 2014		June 30, 2014
	(Dollars In Thousands, Except Per Share Amounts)
Calculation of basic earnings per share:
Net income	$	1,509	$	107,977	$	191,616
Average shares issued and outstanding	79,343,253		78,852,583		78,740,416
Issuable under various deferred compensation plans	1,109,595		1,126,570		1,054,415
Weighted shares outstanding - basic	80,452,848		79,979,153		79,794,831
Per share:
Net income - basic	$	0.02	$	1.35	$	2.40
Calculation of diluted earnings per share:
Net income	$	1,509	$	107,977	$	191,616
Weighted shares outstanding - basic	80,452,848		79,979,153		79,794,831
Stock appreciation rights (“SARs”)	64,570		492,463		479,430
Issuable under various other stock-based compensation plans	935,382		716,327		641,411
Restricted stock units	306,487		258,334		245,128
Weighted shares outstanding - diluted	81,759,287		81,446,277		81,160,800
Per share:
Net income - diluted	$	0.02	$	1.33	$	2.36

14.INCOME TAXES

In the IRS audit that concluded in 2012, the IRS proposed favorable and unfavorable adjustments to the Company’s 2003 through 2007 reported taxable incomes. The Company protested certain unfavorable adjustments and is seeking resolution at the IRS’ Appeals Division. If the IRS prevails at Appeals, and the Company does not litigate these issues, an acceleration of tax payments will occur. However, such payments, if they were to occur, would not materially impact the Company or its effective tax rate.

In conjunction with the Merger and as a result of the adjustments to the Company’s assets and liabilities which were discussed in Note 2, Summary of Significant Accounting Policies, the Company’s deferred tax assets and liabilities were remeasured as of the date of the Merger.

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The components of the Company’s net deferred income tax liability are as follows:

	Successor			Predecessor
	Company			Company
	As of			As of
	June 30, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Deferred income tax assets:
Loss and credit carryforwards	$	74,720		$	516
Premium receivables and policy liabilities	—			95,298
Deferred compensation	231,732			194,223
Invested assets (other than unrealized gains)	—			63,901
Deferred policy acquisition costs	429,086			—
Premium on corporate debt	118,633			—
Net unrealized loss on investments	483,439			—
Other	23,587			—
Valuation allowance	(2,053		)	(2,206		)
	1,359,144			351,732
Deferred income tax liabilities:
Premium receivables and policy liabilities	128,645			—
VOBA and other intangibles	671,775			—
DAC and VOBA	—			1,078,533
Invested assets (other than unrealized gains)	1,626,896			—
Net unrealized gains on investments	—			799,123
Other	—			19,554
	2,427,316			1,897,210
Net deferred income tax liability	$	(1,068,172	)	$	(1,545,478	)

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015
	to			to			As of
	June 30, 2015			January 31, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Balance, beginning of period	$	137,593		$	193,244		$	105,881
Additions for tax positions of the current year	59,042			(5,010		)	57,463
Additions for tax positions of prior years	—			7,724			39,433
Reductions of tax positions of prior years:
Changes in judgment	(1,028		)	(58,365		)	(9,533		)
Settlements during the period	—			—			—
Lapses of applicable statute of limitations	—			—			—
Balance, end of period	$	195,607		$	137,593		$	193,244

The Company believes that it is possible that in the next 12 months approximately $142.5 million of these unrecognized tax benefits will be reduced as the Company anticipates receiving the revenue agent’s report for the examination of the 2008 through 2011 tax years. During the period of February 1, 2015 to June 30, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and the twelve months ended December 31, 2014 (Predecessor Company), ongoing discussions with the IRS related to the examination that is in progress for tax years ending December 31, 2008 through December 31, 2011 prompted the Company to revise its measurement of unrecognized tax benefits. These revisions included increasing prior determinations of amounts

49

accrued for earlier years as well as reducing some previously accrued amounts. These changes were almost entirely related to timing issues. Therefore, aside from the cost of interest, such changes did not result in any impact on the Company’s effective tax rate.

The Company used its estimate of its annual 2015 and 2014 income in computing its effective income tax rates for the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the three and six months ended June 30, 2014 (Predecessor Company). The effective tax rates for the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the three and six months ended June 30, 2014 (Predecessor Company) were 34.1%, 33.2%, (27.7)%,  33.4%, and 33.3%, respectively. The recorded tax benefit for the period of January 1, 2015 to January 31, 2015 (Predecessor Company) includes the benefit associated with the re-measurement of the unrecognized tax benefits discussed in the preceding paragraph.

In general, the Company is no longer subject to U.S. federal, state, and local income tax examinations by taxing authorities for tax years that began before 2003.

Based on the Company’s current assessment of future taxable income, including available tax planning opportunities, the Company anticipates that it is more likely than not that it will generate sufficient taxable income to realize all of its material deferred tax assets. The Company did not record a valuation allowance against its material deferred tax assets as of June 30, 2015 (Successor Company).

15.FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company determined the fair value of its financial instruments based on the fair value hierarchy established in FASB guidance referenced in the Fair Value Measurements and Disclosures Topic which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company has adopted the provisions from the FASB guidance that is referenced in the Fair Value Measurements and Disclosures Topic for non-financial assets and liabilities (such as property and equipment, goodwill, and other intangible assets) that are required to be measured at fair value on a periodic basis. The effect on the Company’s periodic fair value measurements for non-financial assets and liabilities was not material.

The Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into a three level hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.

Financial assets and liabilities recorded at fair value on the consolidated balance sheets are categorized as follows:

·Level 1: Unadjusted quoted prices for identical assets or liabilities in an active market.

·Level 2: Quoted prices in markets that are not active or significant inputs that are observable either directly or indirectly. Level 2 inputs include the following:

a)Quoted prices for similar assets or liabilities in active markets

b)Quoted prices for identical or similar assets or liabilities in non-active markets

c)Inputs other than quoted market prices that are observable

d)Inputs that are derived principally from or corroborated by observable market data through correlation or other means.

·Level 3: Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

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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, 2015 (Successor Company):

	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities - available-for-sale
Residential mortgage-backed securities	$	—	$	1,576,823	$	3	$	1,576,826
Commercial mortgage-backed securities	—		1,203,156		—		1,203,156
Other asset-backed securities	—		208,586		590,885		799,471
U.S. government-related securities	1,091,530		510,000		—		1,601,530
State, municipalities, and political subdivisions	—		1,585,068		—		1,585,068
Other government-related securities	—		18,782		—		18,782
Corporate securities	82		25,057,864		1,111,431		26,169,377
Preferred stock	61,667		—		—		61,667
Total fixed maturity securities - available-for-sale	1,153,279		30,160,279		1,702,319		33,015,877
Fixed maturity securities - trading
Residential mortgage-backed securities	—		298,138		—		298,138
Commercial mortgage-backed securities	—		146,314		—		146,314
Other asset-backed securities	—		108,837		160,594		269,431
U.S. government-related securities	236,424		4,840		—		241,264
State, municipalities, and political subdivisions	—		307,411		—		307,411
Other government-related securities	—		58,090		—		58,090
Corporate securities	—		1,399,192		19,316		1,418,508
Preferred stock	7,576		—		—		7,576
Total fixed maturity securities - trading	244,000		2,322,822		179,910		2,746,732
Total fixed maturity securities	1,397,279		32,483,101		1,882,229		35,762,609
Equity securities	641,429		11,308		69,720		722,457
Other long-term investments(1)	109,761		115,590		169,596		394,947
Short-term investments	191,745		12,922		—		204,667
Total investments	2,340,214		32,622,921		2,121,545		37,084,680
Cash	568,776		—		—		568,776
Other assets	17,835		—		—		17,835
Assets related to separate accounts
Variable annuity	13,313,000		—		—		13,313,000
Variable universal life	859,114		—		—		859,114
Total assets measured at fair value on a recurring basis	$	17,098,939	$	32,622,921	$	2,121,545	$	51,843,405
Liabilities:
Annuity account balances(2)	$	—	$	—	$	95,178	$	95,178
Other liabilities (1)	71,454		19,352		427,765		518,571
Total liabilities measured at fair value on a recurring basis	$	71,454	$	19,352	$	522,943	$	613,749

(1)Includes certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

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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, 2014 (Predecessor Company):

	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities - available-for-sale
Residential mortgage-backed securities	$	—	$	1,418,255	$	3	$	1,418,258
Commercial mortgage-backed securities	—		1,177,252		—		1,177,252
Other asset-backed securities	—		275,415		563,961		839,376
U.S. government-related securities	1,165,188		263,707		—		1,428,895
State, municipalities, and political subdivisions	—		1,684,014		3,675		1,687,689
Other government-related securities	—		20,172		—		20,172
Corporate securities	132		26,059,712		1,325,683		27,385,527
Total fixed maturity securities - available-for-sale	1,165,320		30,898,527		1,893,322		33,957,169
Fixed maturity securities - trading
Residential mortgage-backed securities	—		288,114		—		288,114
Commercial mortgage-backed securities	—		151,111		—		151,111
Other asset-backed securities	—		105,118		169,461		274,579
U.S. government-related securities	245,563		4,898		—		250,461
State, municipalities, and political subdivisions	—		325,446		—		325,446
Other government-related securities	—		57,032		—		57,032
Corporate securities	—		1,447,333		24,744		1,472,077
Total fixed maturity securities - trading	245,563		2,379,052		194,205		2,818,820
Total fixed maturity securities	1,410,883		33,277,579		2,087,527		36,775,989
Equity securities	630,910		99,266		73,054		803,230
Other long-term investments (1)	119,997		106,079		67,894		293,970
Short-term investments	244,100		6,545		—		250,645
Total investments	2,405,890		33,489,469		2,228,475		38,123,834
Cash	379,411		—		—		379,411
Other assets	11,669		—		—		11,669
Assets related to separate accounts
Variable annuity	13,157,429		—		—		13,157,429
Variable universal life	834,940		—		—		834,940
Total assets measured at fair value on a recurring basis	$	16,789,339	$	33,489,469	$	2,228,475	$	52,507,283
Liabilities:
Annuity account balances (2)	$	—	$	—	$	97,825	$	97,825
Other liabilities (1)	62,146		3,741		754,852		820,739
Total liabilities measured at fair value on a recurring basis	$	62,146	$	3,741	$	852,677	$	918,564

(1)Includes certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

Determination of fair values

The valuation methodologies used to determine the fair values of assets and liabilities reflect market participant assumptions and are based on the application of the fair value hierarchy that prioritizes observable market inputs over unobservable inputs. The Company determines the fair values of certain financial assets and financial liabilities based on quoted market prices, where available. The Company also determines certain fair values based on future cash flows discounted at the appropriate current market rate. Fair values reflect adjustments for counterparty credit quality, the Company’s credit standing, liquidity, and where appropriate, risk margins on unobservable parameters. The following is a discussion of the methodologies used to determine fair values for the financial instruments as listed in the above table.

The fair value of fixed maturity, short-term, and equity securities is determined by management after considering one of three primary sources of information: third party pricing services, non-binding independent broker quotations, or pricing matrices. Security pricing is applied using a “waterfall” approach whereby publicly available

52

prices are first sought from third party pricing services, the remaining unpriced securities are submitted to independent brokers for non-binding prices, or lastly, securities are priced using a pricing matrix. Typical inputs used by these three pricing methods include, but are not limited to: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. Third party pricing services price approximately 90% of the Company’s available-for-sale and trading fixed maturity securities. Based on the typical trading volumes and the lack of quoted market prices for available-for-sale and trading fixed maturities, third party pricing services derive the majority of security prices from observable market inputs such as recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information outlined above. If there are no recent reported trades, the third party pricing services and brokers may use matrix or model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Certain securities are priced via independent non-binding broker quotations, which are considered to have no significant unobservable inputs. When using non- binding independent broker quotations, the Company obtains one quote per security, typically from the broker from which we purchased the security. A pricing matrix is used to price securities for which the Company is unable to obtain or effectively rely on either a price from a third party pricing service or an independent broker quotation.

The pricing matrix used by the Company begins with current spread levels to determine the market price for the security. The credit spreads, assigned by brokers, incorporate the issuer’s credit rating, liquidity discounts, weighted- average of contracted cash flows, risk premium, if warranted, due to the issuer’s industry, and the security’s time to maturity. The Company uses credit ratings provided by nationally recognized rating agencies.

For securities that are priced via non-binding independent broker quotations, the Company assesses whether prices received from independent brokers represent a reasonable estimate of fair value through an analysis using internal and external cash flow models developed based on spreads and, when available, market indices. The Company uses a market-based cash flow analysis to validate the reasonableness of prices received from independent brokers. These analytics, which are updated daily, incorporate various metrics (yield curves, credit spreads, prepayment rates, etc.) to determine the valuation of such holdings. As a result of this analysis, if the Company determines there is a more appropriate fair value based upon the analytics, the price received from the independent broker is adjusted accordingly. The Company did not adjust any quotes or prices received from brokers during the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company).

The Company has analyzed the third party pricing services’ valuation methodologies and related inputs and has also evaluated the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs that is in accordance with the Fair Value Measurements and Disclosures Topic of the ASC. Based on this evaluation and investment class analysis, each price was classified into Level 1, 2, or 3. Most prices provided by third party pricing services are classified into Level 2 because the significant inputs used in pricing the securities are market observable and the observable inputs are corroborated by the Company. Since the matrix pricing of certain debt securities includes significant non-observable inputs, they are classified as Level 3.

Asset-Backed Securities

This category mainly consists of residential mortgage-backed securities, commercial mortgage-backed securities, and other asset-backed securities (collectively referred to as asset-backed securities or “ABS”). As of June 30, 2015 (Successor Company), the Company held $3.5 billion of ABS classified as Level 2. These securities are priced from information provided by a third party pricing service and independent broker quotes. The third party pricing services and brokers mainly value securities using both a market and income approach to valuation. As part of this valuation process they consider the following characteristics of the item being measured to be relevant inputs: 1) weighted-average coupon rate, 2) weighted-average years to maturity, 3) types of underlying assets, 4) weighted-average coupon rate of the underlying assets, 5) weighted-average years to maturity of the underlying assets, 6) seniority level of the tranches owned, and 7) credit ratings of the securities.

After reviewing these characteristics of the ABS, the third party pricing service and brokers use certain inputs to determine the value of the security. For ABS classified as Level 2, the valuation would consist of predominantly

53

market observable inputs such as, but not limited to: 1) monthly principal and interest payments on the underlying assets, 2) average life of the security, 3) prepayment speeds, 4) credit spreads, 5) treasury and swap yield curves, and 6) discount margin. The Company reviews the methodologies and valuation techniques (including the ability to observe inputs) in assessing the information received from external pricing services and in consideration of the fair value presentation.

As of June 30, 2015 (Successor Company), the Company held $751.5 million of Level 3 ABS, which included $590.9 million of other asset-backed securities classified as available-for-sale and $160.6 million of other asset-backed securities classified as trading. These securities are predominantly ARS whose underlying collateral is at least 97% guaranteed by the FFELP. As a result of the ARS market collapse during 2008, the Company prices its ARS using an income approach valuation model. As part of the valuation process the Company reviews the following characteristics of the ARS in determining the relevant inputs: 1) weighted-average coupon rate, 2) weighted-average years to maturity, 3) types of underlying assets, 4) weighted-average coupon rate of the underlying assets, 5) weighted-average years to maturity of the underlying assets, 6) seniority level of the tranches owned, 7) credit ratings of the securities, 8) liquidity premium, and 9) paydown rate.

Corporate Securities, U.S. Government-Related Securities, States, Municipals, and Political Subdivisions, and Other Government Related Securities

As of June 30, 2015 (Successor Company), the Company classified approximately $28.9 billion of corporate securities, U.S. government-related securities, states, municipals, and political subdivisions, and other government-related securities as Level 2. The fair value of the Level 2 securities is predominantly priced by broker quotes and a third party pricing service. The Company has reviewed the valuation techniques of the brokers and third party pricing service and has determined that such techniques used Level 2 market observable inputs. The following characteristics of the securities are considered to be the primary relevant inputs to the valuation: 1) weighted- average coupon rate, 2) weighted-average years to maturity, 3) seniority, and 4) credit ratings. The Company reviews the methodologies and valuation techniques (including the ability to observe inputs) in assessing the information received from external pricing services and in consideration of the fair value presentation.

The brokers and third party pricing service utilize valuation models that consist of a hybrid income and market approach to valuation. The pricing models utilize the following inputs: 1) principal and interest payments, 2) treasury yield curve, 3) credit spreads from new issue and secondary trading markets, 4) dealer quotes with adjustments for issues with early redemption features, 5) liquidity premiums present on private placements, and 6) discount margins from dealers in the new issue market.

As of June 30, 2015 (Successor Company), the Company classified approximately $1.1 billion of securities as Level 3 valuations. Level 3 securities primarily represent investments in illiquid bonds for which no price is readily available. To determine a price, the Company uses a discounted cash flow model with both observable and unobservable inputs. These inputs are entered into an industry standard pricing model to determine the final price of the security. These inputs include: 1) principal and interest payments, 2) coupon rate, 3) sector and issuer level spread over treasury, 4) underlying collateral, 5) credit ratings, 6) maturity, 7) embedded options, 8) recent new issuance, 9) comparative bond analysis, and 10) an illiquidity premium.

Equities

As of June 30, 2015 (Successor Company), the Company held approximately $81.0 million of equity securities classified as Level 2 and Level 3. Of this total, $65.7 million represents Federal Home Loan Bank (“FHLB”) stock. The Company believes that the cost of the FHLB stock approximates fair value. The remainder of these equity securities is primarily investments in preferred stock.

54

Other Long-Term Investments and Other Liabilities

Other long-term investments and other liabilities consist entirely of free-standing and embedded derivative financial instruments. Refer to Note 16, Derivative Financial Instruments for additional information related to derivatives. Derivative financial instruments are valued using exchange prices, independent broker quotations, or pricing valuation models, which utilize market data inputs. Excluding embedded derivatives, as of June 30, 2015 (Successor Company), 100% of derivatives based upon notional values were priced using exchange prices or independent broker quotations. The remaining derivatives were priced by pricing valuation models, which predominantly utilize observable market data inputs. Inputs used to value derivatives include, but are not limited to, interest swap rates, credit spreads, interest rate and equity market volatility indices, equity index levels, and treasury rates. The Company performs monthly analysis on derivative valuations that includes both quantitative and qualitative analyses.

Derivative instruments classified as Level 1 generally include futures and options, which are traded on active exchange markets.

Derivative instruments classified as Level 2 primarily include interest rate and inflation swaps, options, and swaptions. These derivative valuations are determined using independent broker quotations, which are corroborated with observable market inputs.

Derivative instruments classified as Level 3 were embedded derivatives and include at least one significant non-observable input. A derivative instrument containing Level 1 and Level 2 inputs will be classified as a Level 3 financial instrument in its entirety if it has at least one significant Level 3 input.

The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instruments may not be classified within the same fair value hierarchy level as the associated assets and liabilities. Therefore, the changes in fair value on derivatives reported in Level 3 may not reflect the offsetting impact of the changes in fair value of the associated assets and liabilities.

The embedded derivatives are carried at fair value in “other long-term investments” and “other liabilities” on the Company’s consolidated condensed balance sheet. The changes in fair value are recorded in earnings as “Realized investment gains (losses)—Derivative financial instruments”. Refer to Note 16, Derivative Financial Instruments for more information related to each embedded derivatives gains and losses.

The fair value of the GMWB embedded derivative is derived through the income method of valuation using a valuation model that projects future cash flows using multiple risk neutral stochastic equity scenarios and policyholder behavior assumptions. The risk neutral scenarios are generated using the current swap curve and projected equity volatilities and correlations. The projected equity volatilities are based on a blend of historical volatility and near- term equity market implied volatilities. The equity correlations are based on historical price observations. For policyholder behavior assumptions, expected lapse and utilization assumptions are used and updated for actual experience, as necessary. The Company assumes age-based mortality from the National Association of Insurance Commissioners 1994 Variable Annuity MGDB Mortality Table for company experience, with attained age factors varying from 44.5% - 100%. The present value of the cash flows is determined using the discount rate curve, which is based upon LIBOR plus a credit spread (to represent the Company’s non-performance risk). As a result of using significant unobservable inputs, the GMWB embedded derivative is categorized as Level 3. These assumptions are reviewed on a quarterly basis.

The balance of the FIA embedded derivative is impacted by policyholder cash flows associated with the FIA product that are allocated to the embedded derivative in addition to changes in the fair value of the embedded derivative during the reporting period. The fair value of the FIA embedded derivative is derived through the income method of valuation using a valuation model that projects future cash flows using current index values and volatility, the hedge budget used to price the product, and policyholder assumptions (both elective and non-elective). For policyholder behavior assumptions, expected lapse and withdrawal assumptions are used and updated for actual experience, as necessary. The Company assumes age-based mortality from the 1994 Variable Annuity MGDB mortality table modified for company experience, with attained age factors varying from 49% - 80%. The present value of the cash flows is determined using the discount rate curve, which is based upon LIBOR up to one year and constant maturity

55

treasury rates plus a credit spread (to represent the Company’s non-performance risk) thereafter. Policyholder assumptions are reviewed on an annual basis. As a result of using significant unobservable inputs, the FIA embedded derivative is categorized as Level 3.

The balance of the indexed universal life (“IUL”) embedded derivative is impacted by policyholder cash flows associated with the IUL product that are allocated to the embedded derivative in addition to changes in the fair value of the embedded derivative during the reporting period. The fair value of the IUL embedded derivative is derived through the income method of valuation using a valuation model that projects future cash flows using current index values and volatility, the hedge budget used to price the product, and policyholder assumptions (both elective and non-elective). For policyholder behavior assumptions, expected lapse and withdrawal assumptions are used and updated for actual experience, as necessary. The Company assumes age-based mortality from the SOA 2014 VBT Primary Tables modified for company experience, with attained age factors varying from 44% - 137%. The present value of the cash flows is determined using the discount rate curve, which is based upon LIBOR up to one year and constant maturity treasury rates plus a credit spread (to represent the Company’s non-performance risk) thereafter. Policyholder assumptions are reviewed on an annual basis. As a result of using significant unobservable inputs, the IUL embedded derivative is categorized as Level 3.

The Company has assumed and ceded certain blocks of policies under modified coinsurance agreements in which the investment results of the underlying portfolios inure directly to the reinsurers. As a result, these agreements contain embedded derivatives that are reported at fair value. Changes in their fair value are reported in earnings. The investments supporting these agreements are designated as “trading securities”; therefore changes in their fair value are also reported in earnings. The fair value of the embedded derivative is the difference between the statutory policy liabilities (net of policy loans) of $2.5 billion and the fair value of the trading securities of $2.7 billion. As a result, changes in the fair value of the embedded derivatives are largely offset by the changes in fair value of the related investments and each are reported in earnings. The fair value of the embedded derivative is considered a Level 3 valuation due to the unobservable nature of the policy liabilities.

Annuity Account Balances

The Company records certain of its FIA reserves at fair value. The fair value is considered a Level 3 valuation. The FIA valuation model calculates the present value of future benefit cash flows less the projected future profits to quantify the net liability that is held as a reserve. This calculation is done using multiple risk neutral stochastic equity scenarios. The cash flows are discounted using LIBOR plus a credit spread. Best estimate assumptions are used for partial withdrawals, lapses, expenses and asset earned rate with a risk margin applied to each. These assumptions are reviewed at least annually as a part of the formal unlocking process. If an event were to occur within a quarter that would make the assumptions unreasonable, the assumptions would be reviewed within the quarter.

The discount rate for the fixed indexed annuities is based on an upward sloping rate curve which is updated each quarter. The discount rates for June 30, 2015 (Successor Company), ranged from a one month rate of 0.35%, a 5 year rate of 2.47%, and a 30 year rate of 3.98%. A credit spread component is also included in the calculation to accommodate non-performance risk.

Separate Accounts

Separate account assets are invested in open-ended mutual funds and are included in Level 1.

56

Valuation of Level 3 Financial Instruments

The following table presents the valuation method for material financial instruments included in Level 3, as well as the unobservable inputs used in the valuation of those financial instruments:

	Successor
	Company
	Fair Value
	As of		Valuation	Unobservable	Range
	June 30, 2015		Technique	Input	(Weighted Average)
	(Dollars In Thousands)
Assets:
Other asset-backed securities	$	590,885	Discounted cash flow	Liquidity premium	0.55% - 1.50% (1.03%)
				Paydown rate	9.95% - 14.69% (12.57%)
Corporate securities	1,084,954		Discounted cash flow	Spread over	0.58% - 12.00% (2.25%)
				Treasury
Embedded derivatives - GMWB(1)	59,888		Actuarial cash flow model	Mortality	1994 MGDB table with
					company experience
				Lapse	0.29% - 17%, depending on
					product/duration/funded
					status of guarantee
				Utilization	99%. 10% of policies have a
					one-time over-utilization of
					400%
				Nonperformance risk	0.16% - 1.04%
Liabilities:
Annuity account balances(2)	$	95,178	Actuarial cash flow model	Asset earned rate	3.71% - 5.77%
				Expenses	$80 per policy
				Withdrawal rate	2.20%
				Mortality	1994 MGDB table with
					company experience
				Lapse	2.2% - 33.0%, depending
					on duration/surrender
					charge period
				Return on assets	1.50% - 1.85% depending on
					duration/surrender
					charge period
				Nonperformance risk	0.16% - 1.04%
Embedded derivative - FIA	85,129		Actuarial cash flow model	Expenses	$80 per policy
				Withdrawal rate	1.1% - 4.5% depending on
					duration and tax qualification
				Mortality	1994 MGDB table with
					company experience
				Lapse	2.5% - 40.0%, depending
					on duration/surrender
					charge period
				Nonperformance risk	0.16% - 1.04%
Embedded derivative - IUL	11,902		Actuarial cash flow model	Mortality	44% - 137% of 2014
					VBT Primary Tables
				Lapse	0.5% - 10.0%, depending on
					duration/distribution channel
					and smoking class
				Nonperformance risk	0.16% - 1.04%

(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.

The chart above excludes Level 3 financial instruments that are valued using broker quotes and those which book value approximates fair value.

The Company has considered all reasonably available quantitative inputs as of June 30, 2015 (Successor Company), but the valuation techniques and inputs used by some brokers in pricing certain financial instruments are not shared with the Company. This resulted in $209.4 million of financial instruments being classified as Level 3 as of June

57

30, 2015 (Successor Company). Of the $209.4 million, $160.6 million are other asset-backed securities, $45.8 million are corporate securities, and $3.0 million are equity securities.

In certain cases the Company has determined that book value materially approximates fair value. As of June 30, 2015 (Successor Company), the Company held $66.7 million of financial instruments where book value approximates fair value. Of the $66.7 million, the entirety of this balance represents equity securities, which are predominantly FHLB stock.

The following table presents the valuation method for material financial instruments included in Level 3, as well as the unobservable inputs used in the valuation of those financial instruments:

	Predecessor
	Company
	Fair Value
	As of		Valuation	Unobservable	Range
	December 31, 2014		Technique	Input	(Weighted Average)
	(Dollars In Thousands)
Assets:
Other asset-backed securities	$	563,752	Discounted cash flow	Liquidity premium	0.39% - 1.49% (0.69%)
				Paydown rate	9.70% - 15.80% (12.08%)
Corporate securities	1,282,864		Discounted cash flow	Spread over	0.33% - 7.50% (2.19%)
				treasury
Liabilities:
Embedded derivatives - GMWB(1)	$	245,090	Actuarial cash flow model	Mortality	44.5% to 100% of 1994
					MGDB table
				Lapse	0.25% - 17%, depending on
					product/duration/funded
					status of guarantee
				Utilization	97% - 101%
				Nonperformance risk	0.12% - 0.96%
Annuity account balances(2)	97,825		Actuarial cash flow model	Asset earned rate	3.86% - 5.92%
				Expenses	$88 - $102 per policy
				Withdrawal rate	2.20%
				Mortality	49% to 80% of 1994
					MGDB table
				Lapse	2.2% - 33.0%, depending
					on duration/surrender
					charge period
				Return on assets	1.50% - 1.85% depending on
					surrender charge period
				Nonperformance risk	0.12% - 0.96%
Embedded derivative - FIA	124,465		Actuarial cash flow model	Expenses	$83 - $97 per policy
				Withdrawal rate	1.1% - 4.5% depending on
					duration and tax qualification
				Mortality	49% to 80% of 1994
					MGDB table
				Lapse	2.5% - 40.0%, depending
					on duration/surrender
					charge period
				Nonperformance risk	0.12% - 0.96%
Embedded derivative - IUL	6,691		Actuarial cash flow model	Mortality	37% - 74% of 2008
					VBT Primary Tables
				Lapse	0.5% - 10.0%, depending
					on duration/distribution
					channel and smoking class
				Nonperformance risk	0.12% - 0.96%

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

(2)Represents liabilities related to fixed indexed annuities.

58

The chart above excludes Level 3 financial instruments that are valued using broker quotes and those which book value approximates fair value.

The Company has considered all reasonably available quantitative inputs as of December 31, 2014 (Predecessor Company), but the valuation techniques and inputs used by some brokers in pricing certain financial instruments are not shared with the Company. This resulted in $240.3 million of financial instruments being classified as Level 3 as of December 31, 2014 (Predecessor Company). Of the $240.3 million, $169.7 million are other asset-backed securities, $67.6 million are corporate bonds, and $3.0 million are equity securities.

In certain cases the Company has determined that book value materially approximates fair value. As of December 31, 2014 (Predecessor Company), the Company held $73.7 million of financial instruments where book value approximates fair value. Of the $73.7 million, $70.0 million represents equity securities, which are predominantly FHLB stock, and $3.7 million of other fixed maturity securities.

The asset-backed securities classified as Level 3 are predominantly ARS. A change in the paydown rate (the projected annual rate of principal reduction) of the ARS can significantly impact the fair value of these securities. A decrease in the paydown rate would increase the projected weighted average life of the ARS and increase the sensitivity of the ARS’ fair value to changes in interest rates. An increase in the liquidity premium would result in a decrease in the fair value of the securities, while a decrease in the liquidity premium would increase the fair value of these securities.

The fair value of corporate bonds classified as Level 3 is sensitive to changes in the interest rate spread over the corresponding U.S. Treasury rate. This spread represents a risk premium that is impacted by company specific and market factors. An increase in the spread can be caused by a perceived increase in credit risk of a specific issuer and/or an increase in the overall market risk premium associated with similar securities. The fair values of corporate bonds are sensitive to changes in spread. When holding the treasury rate constant, the fair value of corporate bonds increases when spreads decrease, and decreases when spreads increase.

The fair value of the GMWB embedded derivative is sensitive to changes in the discount rate which includes the Company’s nonperformance risk, volatility, lapse, and mortality assumptions. The volatility assumption is an observable input as it is based on market inputs. The Company’s nonperformance risk, lapse, and mortality are unobservable. An increase in the three unobservable assumptions would result in a decrease in the fair value of the liability and conversely, if there is a decrease in the assumptions the fair value would increase. The fair value is also dependent on the assumed policyholder utilization of the GMWB where an increase in assumed utilization would result in an increase in the fair value of the liability and conversely, if there is a decrease in the assumption, the fair value would decrease.

The fair value of the FIA account balance liability is predominantly impacted by observable inputs such as discount rates and equity returns. However, the fair value of the FIA embedded derivative is sensitive to non-performance risk, which is unobservable. The value of the liability increases with decreases in discount rate and non-performance risk and decreases with increases in the discount rate and non-performance risk. The value of the liability increases with increases in equity returns and the liability decreases with a decrease in equity returns.

The fair value of the FIA embedded derivative is predominantly impacted by observable inputs such as discount rates and equity returns. However, the fair value of the FIA embedded derivative is sensitive to non-performance risk, which is unobservable. The value of the liability increases with decreases in the discount rate and non-performance risk and decreases with increases in the discount rate and nonperformance risk. The value of the liability increases with increases in equity returns and the liability decreases with a decrease in equity returns.

The fair value of the IUL embedded derivative is predominantly impacted by observable inputs such as discount rates and equity returns. However, the fair value of the IUL embedded derivative is sensitive to non-performance risk, which is unobservable. The value of the liability increases with decreases in the discount rate and non-performance risk and decreases with increases in the discount rate and non-performance risk. The value of the liability increases with increases in equity returns and the liability decreases with a decrease in equity returns.

59

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the three months ended June 30, 2015 (Successor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total
																														Gains (losses)
																														included in
			Total				Total																							Earnings
			Realized and Unrealized				Realized and Unrealized																							related to
			Gains				Losses																							Instruments
					Included in					Included in																				still held at
					Other					Other												Transfers								the
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of						Ending		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	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	600,132		—		165		(92		)	(9,323		)	—		(87		)	—		—		—			90			590,885		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	1,283,142		3,656		4,001		(687		)	(24,247		)	89,929		(219,148		)	—		—		(21,803		)	(3,412		)	1,111,431		—
Total fixed maturity securities - available-for-sale	1,883,277		3,656		4,166		(779		)	(33,570		)	89,929		(219,235		)	—		—		(21,803		)	(3,322		)	1,702,319		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	170,500		589		—		(5,173		)	—			—		(5,468		)	—		—		—			146			160,594		(4,587		)
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	19,614		140		—		(233		)	—			—		(161		)	—		—		—			(44		)	19,316		(93		)
Total fixed maturity securities - trading	190,114		729		—		(5,406		)	—			—		(5,629		)	—		—		—			102			179,910		(4,680		)
Total fixed maturity securities	2,073,391		4,385		4,166		(6,185		)	(33,570		)	89,929		(224,864		)	—		—		(21,803		)	(3,220		)	1,882,229		(4,680		)
Equity securities	69,951		—		—		—			—			—		(231		)	—		—		—			—			69,720		—
Other long-term investments(1)	122,894		46,702		—		—			—			—		—			—		—		—			—			169,596		46,702
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	2,266,236		51,087		4,166		(6,185		)	(33,570		)	89,929		(225,095		)	—		—		(21,803		)	(3,220		)	2,121,545		42,022
Total assets measured at fair value on a recurring basis	$	2,266,236	$	51,087	$	4,166	$	(6,185	)	$	(33,570	)	$	89,929	$	(225,095	)	$	—	$	—	$	(21,803	)	$	(3,220	)	$	2,121,545	$	42,022
Liabilities:
Annuity account balances(2)	$	97,108	$	—	$	—	$	(911	)	$	—		$	—	$	—		$	72	$	2,913	$	—		$	—		$	95,178	$	—
Other liabilities(1)	627,515		224,194		—		(24,444		)	—			—		—			—		—		—			—			427,765		199,750
Total liabilities measured at fair value on a recurring basis	$	724,623	$	224,194	$	—	$	(25,355	)	$	—		$	—	$	—		$	72	$	2,913	$	—		$	—		$	522,943	$	199,750

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

For the three months ended June 30, 2015 (Successor Company), there were no transfers of securities into Level 3.

For the three months ended June 30, 2015 (Successor Company), $21.8 million of securities were transferred into Level 2. This amount was transferred from Level 3. These transfers resulted from securities that were priced internally using significant unobservable inputs where market observable inputs were no longer available in previous periods but were priced by independent pricing services or brokers as of June 30, 2015 (Successor Company).

For the three months ended June 30, 2015 (Successor Company), there were no transfers of securities from Level 2 to Level 1.

For the three months ended June 30, 2015 (Successor Company), there were no transfers of securities from Level 1.

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The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the period of February 1, 2015 to June 30, 2015 (Successor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total
																														Gains (losses)
																														included in
			Total				Total																							Earnings
			Realized and Unrealized				Realized and Unrealized																							related to
			Gains				Losses																							Instruments
					Included in					Included in																				still held at
					Other					Other												Transfers								the
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of						Ending		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	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	603,646		—		165		(92		)	(12,891		)	—		(127		)	—		—		—			184			590,885		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		(3,675		)	—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	1,307,259		4,291		15,619		(687		)	(24,247		)	111,929		(254,935		)	—		—		(41,853		)	(5,945		)	1,111,431		—
Total fixed maturity securities - available-for-sale	1,914,583		4,291		15,784		(779		)	(37,138		)	111,929		(258,737		)	—		—		(41,853		)	(5,761		)	1,702,319		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	169,473		3,949		—		(5,173		)	—			—		(7,876		)	—		—		—			221			160,594		(5,829		)
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	25,130		174		—		(299		)	—			—		(5,584		)	—		—		—			(105		)	19,316		(1,180		)
Total fixed maturity securities - trading	194,603		4,123		—		(5,472		)	—			—		(13,460		)	—		—		—			116			179,910		(7,009		)
Total fixed maturity securities	2,109,186		8,414		15,784		(6,251		)	(37,138		)	111,929		(272,197		)	—		—		(41,853		)	(5,645		)	1,882,229		(7,009		)
Equity securities	73,044		—		—		—			—			—		(231		)	—		—		—			(3,093		)	69,720		—
Other long-term investments(1)	93,274		76,342		—		(20		)	—			—		—			—		—		—			—			169,596		76,322
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	2,275,504		84,756		15,784		(6,271		)	(37,138		)	111,929		(272,428		)	—		—		(41,853		)	(8,738		)	2,121,545		69,313
Total assets measured at fair value on a recurring basis	$	2,275,504	$	84,756	$	15,784	$	(6,271	)	$	(37,138	)	$	111,929	$	(272,428	)	$	—	$	—	$	(41,853	)	$	(8,738	)	$	2,121,545	$	69,313
Liabilities:
Annuity account balances(2)	$	98,279	$	—	$	—	$	(1,544	)	$	—		$	—	$	—		$	86	$	4,731	$	—		$	—		$	95,178	$	—
Other liabilities(1)	742,130		358,811		—		(44,446		)	—			—		—			—		—		—			—			427,765		314,365
Total liabilities measured at fair value on a recurring basis	$	840,409	$	358,811	$	—	$	(45,990	)	$	—		$	—	$	—		$	86	$	4,731	$	—		$	—		$	522,943	$	314,365

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

For the period of February 1, 2015 to June 30, 2015 (Successor Company), there were no transfers of securities into Level 3.

For the period of February 1, 2015 to June 30, 2015 (Successor Company), $41.9 million of securities were transferred into Level 2. This amount was transferred from Level 3. These transfers resulted from securities that were priced internally using significant unobservable inputs where market observable inputs were no longer available in previous periods but were priced by independent pricing services or brokers as of June 30, 2015 (Successor Company).

For the period of February 1, 2015 to June 30, 2015 (Successor Company), $90.4 million of securities were transferred from Level 2 to Level 1.

For the period of February 1, 2015 to June 30, 2015 (Successor Company), there were no transfers from Level 1.

61

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for period of January 1, 2015 to January 31, 2015 (Predecessor Company), for which the Company has used significant unobservable inputs (Level 3):

																													Total
																													Gains (losses)
																													included in
			Total				Total																						Earnings
			Realized and Unrealized				Realized and Unrealized																						related to
			Gains				Losses																						Instruments
					Included in					Included in																			still held at
					Other					Other												Transfers							the
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of					Ending		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	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—	$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	563,961		—		—		—			(3,867		)	—		(32		)	—		—		43,205		379			603,646		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		—			—		—		—		—			3,675		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Corporate securities	1,325,683		—		12,282		—			(23,029		)	—		(7,062		)	—		—		—		(615		)	1,307,259		—
Total fixed maturity securities - available-for-sale	1,893,322		—		12,282		—			(26,896		)	—		(7,094		)	—		—		43,205		(236		)	1,914,583		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	169,461		586		—		(139		)	—			—		(472		)	—		—		—		37			169,473		447
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—		—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Corporate securities	24,744		602		—		(196		)	—			—		(20		)	—		—		—		—			25,130		406
Total fixed maturity securities - trading	194,205		1,188		—		(335		)	—			—		(492		)	—		—		—		37			194,603		853
Total fixed maturity securities	2,087,527		1,188		12,282		(335		)	(26,896		)	—		(7,586		)	—		—		43,205		(199		)	2,109,186		853
Equity securities	73,054		—		—		—			(10		)	—		—			—		—		—		—			73,044		—
Other long-term investments(1)	67,894		753		—		(25,902		)	—			—		—			—		—		—		—			42,745		(25,149		)
Short-term investments	—		—		—		—			—			—		—			—		—		—		—			—		—
Total investments	2,228,475		1,941		12,282		(26,237		)	(26,906		)	—		(7,586		)	—		—		43,205		(199		)	2,224,975		(24,296		)
Total assets measured at fair value on a recurring basis	$	2,228,475	$	1,941	$	12,282	$	(26,237	)	$	(26,906	)	$	—	$	(7,586	)	$	—	$	—	$	43,205	$	(199	)	$	2,224,975	$	(24,296	)
Liabilities:
Annuity account balances(2)	$	97,825	$	—	$	—	$	(536	)	$	—		$	—	$	—		$	7	$	419	$	—	$	—		$	97,949	$	—
Other liabilities(1)	754,852		61		—		(253,773		)	—			—		—			—		—		—		—			1,008,564		(253,712		)
Total liabilities measured at fair value on a recurring basis	$	852,677	$	61	$	—	$	(254,309	)	$	—		$	—	$	—		$	7	$	419	$	—	$	—		$	1,106,513	$	(253,712	)

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), $43.2 million of securities were transferred into Level 3. This amount was transferred from Level 2. These transfers resulted from securities that were priced by independent pricing services or brokers in previous periods, using no significant unobservable inputs, but were priced internally using significant unobservable inputs where market observable inputs were no longer available as of January 31, 2015 (Predecessor Company). All transfers are recognized as of the end of the period.

For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), there were no transfers from Level 3 to Level 2.

For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), there were no transfers from Level 2 to Level 1 and there were no transfers out of Level 1.

62

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the three months ended June 30, 2014 (Predecessor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total
																														Gains (losses)
																														included in
			Total				Total																							Earnings
			Realized and Unrealized				Realized and Unrealized																							related to
			Gains				Losses																							Instruments
					Included in					Included in																				still held at
					Other					Other												Transfers								the
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of						Ending		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	$	17	$	—	$	—	$	—		$	—		$	—	$	(7	)	$	—	$	—	$	—		$	—		$	10	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	548,805		—		29,929		—			(104		)	—		(9,534		)	—		—		—			(999		)	568,097		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		—			—		—		—			—			3,675		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	1,573,710		74		27,271		—			(2,250		)	60,845		(65,172		)	—		—		(67,478		)	(2,703		)	1,524,297		—
Total fixed maturity securities - available-for-sale	2,126,207		74		57,200		—			(2,354		)	60,845		(74,713		)	—		—		(67,478		)	(3,702		)	2,096,079		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			842		—			—		—		—			—			842		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	194,664		6,124		—		(2,686		)	—			—		(21,883		)	—		—		—			167			176,386		522
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	30,946		340		—		(40		)	—			4,059		(5,047		)	—		—		1,250			12			31,520		280
Total fixed maturity securities - trading	225,610		6,464		—		(2,726		)	—			4,901		(26,930		)	—		—		1,250			179			208,748		802
Total fixed maturity securities	2,351,817		6,538		57,200		(2,726		)	(2,354		)	65,746		(101,643		)	—		—		(66,228		)	(3,523		)	2,304,827		802
Equity securities	81,493		—		965		—			—			—		(674		)	—		—		—			—			81,784		—
Other long-term investments(1)	143,808		240		—		(20,747		)	—			—		—			—		—		—			—			123,301		(20,507		)
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	2,577,118		6,778		58,165		(23,473		)	(2,354		)	65,746		(102,317		)	—		—		(66,228		)	(3,523		)	2,509,912		(19,705		)
Total assets measured at fair value on a recurring basis	$	2,577,118	$	6,778	$	58,165	$	(23,473	)	$	(2,354	)	$	65,746	$	(102,317	)	$	—	$	—	$	(66,228	)	$	(3,523	)	$	2,509,912	$	(19,705	)
Liabilities:
Annuity account balances(2)	$	105,593	$	—	$	—	$	(1,714	)	$	—		$	—	$	—		$	63	$	4,914	$	—		$	—		$	102,456	$	—
Other liabilities(1)	371,365		13		—		(113,395		)	—			—		—			—		—		—			—			484,747		(113,382		)
Total liabilities measured at fair value on a recurring basis	$	476,958	$	13	$	—	$	(115,109	)	$	—		$	—	$	—		$	63	$	4,914	$	—		$	—		$	587,203	$	(113,382	)

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

For the three months ended June 30, 2014 (Predecessor Company), $1.3 million of securities were transferred into Level 3. This amount was transferred from Level 2. These transfers resulted from securities that were priced by independent pricing services or brokers in previous periods, using no significant unobservable inputs, but were priced internally using significant unobservable inputs where market observable inputs were no longer available as of June 30, 2014 (Predecessor Company).

For the three months ended June 30, 2014 (Predecessor Company), $67.5 million of securities were transferred into Level 2. This amount was transferred from Level 3. These transfers resulted from securities that were previously priced internally using significant unobservable inputs, now being priced by independent pricing services or brokers.

For the three months ended June 30, 2014 (Predecessor Company), there were no transfers from Level 2 to Level 1.

For the three months ended June 30, 2014 (Predecessor Company), there were no transfers from Level 1.

63

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the six months ended June 30, 2014 (Predecessor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total
																														Gains (losses)
																														included in
			Total				Total																							Earnings
			Realized and Unrealized				Realized and Unrealized																							related to
			Gains				Losses																							Instruments
					Included in					Included in																				still held at
					Other					Other												Transfers								the
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of						Ending		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	$	28	$	—	$	—	$	—		$	—		$	—	$	(18	)	$	—	$	—	$	—		$	—		$	10	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	545,808		—		34,066		—			(1,233		)	—		(9,794		)	—		—		—			(750		)	568,097		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		—			—		—		—			—			3,675		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	1,549,940		969		54,288		—			(7,265		)	90,232		(103,039		)	—		—		(55,293		)	(5,535		)	1,524,297		—
Total fixed maturity securities - available-for-sale	2,099,451		969		88,354		—			(8,498		)	90,232		(112,851		)	—		—		(55,293		)	(6,285		)	2,096,079		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			842		—			—		—		—			—			842		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	194,977		6,851		—		(3,114		)	—			—		(22,695		)	—		—		—			367			176,386		654
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	29,199		878		—		(53		)	—			4,059		(5,110		)	—		—		2,522			25			31,520		—
Total fixed maturity securities - trading	224,176		7,729		—		(3,167		)	—			4,901		(27,805		)	—		—		2,522			392			208,748		654
Total fixed maturity securities	2,323,627		8,698		88,354		(3,167		)	(8,498		)	95,133		(140,656		)	—		—		(52,771		)	(5,893		)	2,304,827		654
Equity securities	71,881		—		1,192		—			(166		)	9,551		(674		)	—		—		—			—			81,784		—
Other long-term investments(1)	196,133		245		—		(73,077		)	—			—		—			—		—		—			—			123,301		(72,832		)
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	2,591,641		8,943		89,546		(76,244		)	(8,664		)	104,684		(141,330		)	—		—		(52,771		)	(5,893		)	2,509,912		(72,178		)
Total assets measured at fair value on a recurring basis	$	2,591,641	$	8,943	$	89,546	$	(76,244	)	$	(8,664	)	$	104,684	$	(141,330	)	$	—	$	—	$	(52,771	)	$	(5,893	)	$	2,509,912	$	(72,178	)
Liabilities:
Annuity account balances(2)	$	107,000	$	—	$	—	$	(3,123	)	$	—		$	—	$	—		$	175	$	7,842	$	—		$	—		$	102,456	$	—
Other liabilities(1)	270,630		25		—		(214,142		)	—			—		—			—		—		—			—			484,747		(214,117		)
Total liabilities measured at fair value on a recurring basis	$	377,630	$	25	$	—	$	(217,265	)	$	—		$	—	$	—		$	175	$	7,842	$	—		$	—		$	587,203	$	(214,117	)

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

For the six months ended June 30, 2014 (Predecessor Company), $31.0 million of securities were transferred into Level 3. This amount was transferred from Level 2. These transfers resulted from securities that were priced by independent pricing services or brokers in previous periods, using no significant unobservable inputs, but were priced internally using significant unobservable inputs where market observable inputs were no longer available as of June 30, 2014 (Predecessor Company). All transfers are recognized as of the end of the period.

For the six months ended June 30, 2014 (Predecessor Company), $83.8 million of securities were transferred into Level 2. This amount was transferred from Level 3. These transfers resulted from securities that were previously priced internally using significant unobservable inputs, now being priced by independent pricing services or brokers.

For the six months ended June 30, 2014 (Predecessor Company), there were no transfers from Level 2 to Level 1.

For the six months ended June 30, 2014 (Predecessor Company), there were no transfers out of Level 1.

64

Total realized and unrealized gains (losses) on Level 3 assets and liabilities are primarily reported in either realized investment gains (losses) within the consolidated condensed statements of income (loss) or other comprehensive income (loss) within shareowner’s equity based on the appropriate accounting treatment for the item.

Purchases, sales, issuances, and settlements, net, represent the activity that occurred during the period that results in a change of the asset or liability but does not represent changes in fair value for the instruments held at the beginning of the period. Such activity primarily relates to purchases and sales of fixed maturity securities and issuances and settlements of fixed indexed annuities.

The Company reviews the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in and out of Level 3 at the beginning fair value for the reporting period in which the changes occur. The asset transfers in the table(s) above primarily related to positions moved from Level 3 to Level 2 as the Company determined that certain inputs were observable.

The amount of total gains (losses) for assets and liabilities still held as of the reporting date primarily represents changes in fair value of trading securities and certain derivatives that exist as of the reporting date and the change in fair value of fixed indexed annuities.

Estimated Fair Value of Financial Instruments

The carrying amounts and estimated fair values of the Company’s financial instruments as of the periods shown below are as follows:

		Successor				Predecessor
		Company				Company
		As of				As of
		June 30, 2015				December 31, 2014
	Fair Value	Carrying				Carrying
	Level	Amounts		Fair Values		Amounts		Fair Values
		(Dollars In Thousands)				(Dollars In Thousands)
Assets:
Mortgage loans on real estate	3	$	5,677,667	$	5,542,878	$	5,133,780	$	5,524,059
Policy loans	3	1,719,864		1,719,864		1,758,237		1,758,237
Fixed maturities, held-to-maturity(1)	3	565,334		489,950		435,000		458,422
Liabilities:
Stable value product account balances	3	$	1,861,280	$	1,859,409	$	1,959,488	$	1,973,624
Annuity account balances	3	10,792,560		10,260,654		10,950,729		10,491,775
Debt:
Bank borrowings	3	$	545,000	$	545,000	$	450,000	$	450,000
Senior Notes	2	1,117,739		1,058,816		850,000		1,100,380
Subordinated debt securities	2	452,424		445,760		540,593		552,098
Non-recourse funding obligations(2)	3	656,299		590,305		582,404		578,212

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, $470.0 million, fair value of $469.7 million, as of June 30, 2015 (Successor Company) and $435.0 million, fair value of $461.4 million, as of December 31, 2014 (Predecessor Company), relates to non-recourse funding obligations issued by Golden Gate V.

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Fair Value Measurements

Mortgage loans on real estate

The Company estimates the fair value of mortgage loans using an internally developed model. This model includes inputs derived by the Company based on assumed discount rates relative to the Company’s current mortgage loan lending rate and an expected cash flow analysis based on a review of the mortgage loan terms. The model also contains the Company’s determined representative risk adjustment assumptions related to credit and liquidity risks.

Policy loans

The Company believes the fair value of policy loans approximates book value. Policy loans are funds provided to policy holders in return for a claim on the policy. The funds provided are limited to the cash surrender value of the underlying policy. The nature of policy loans is to have a negligible default risk as the loans are fully collateralized by the value of the policy. Policy loans do not have a stated maturity and the balances and accrued interest are repaid either by the policyholder or with proceeds from the policy. Due to the collateralized nature of policy loans and unpredictable timing of repayments, the Company believes the fair value of policy loans approximates carrying value.

Fixed maturities, held-to-maturity

The Company estimates the fair value of its fixed maturity, held-to-maturity securities using internal discounted cash flow models. The discount rates used in the model were based on a current market yield for similar financial instruments.

Stable value product and Annuity account balances

The Company estimates the fair value of stable value product account balances and annuity account balances using models based on discounted expected cash flows. The discount rates used in the models were based on a current market rate for similar financial instruments.

Debt

Bank borrowings

The Company believes the carrying value of its bank borrowings approximates fair value as the borrowings pay a floating interest rate plus a spread based on the rating of the Company’s senior debt which the Company believes approximates a market interest rate.

Non-recourse funding obligations

The Company estimates the fair value of its non-recourse funding obligations using internal discounted cash flow models. The discount rates used in the model were based on a current market yield for similar financial instruments.

16.DERIVATIVE FINANCIAL INSTRUMENTS

Types of Derivative Instruments and Derivative Strategies

The Company utilizes a risk management strategy that incorporates the use of derivative financial instruments to reduce exposure to certain risks, including but not limited to, interest rate risk, inflation risk, currency exchange risk, volatility risk, and equity market risk. These strategies are developed through the Company’s analysis of data from financial simulation models and other internal and industry sources, and are then incorporated into the Company’s risk management program.

Derivative instruments expose the Company to credit and market risk and could result in material changes from period to period. The Company attempts to minimize its credit risk by entering into transactions with highly rated

66

counterparties. The Company manages the market risk by establishing and monitoring limits as to the types and degrees of risk that may be undertaken. The Company monitors its use of derivatives in connection with its overall asset/liability management programs and risk management strategies. In addition, all derivative programs are monitored by our risk management department.

Derivatives Related to Interest Rate Risk Management

Derivative instruments that are used as part of the Company’s interest rate risk management strategy include interest rate swaps, interest rate futures, interest rate caps, and interest rate swaptions. The Company’s inflation risk management strategy involves the use of swaps that requires the Company to pay a fixed rate and receive a floating rate that is based on changes in the Consumer Price Index (“CPI”).

Derivatives Related to Risk Mitigation of Certain Annuity Contracts

The Company may use the following types of derivative contracts to mitigate its exposure to certain guaranteed benefits related to VA, fixed indexed annuity, and indexed universal life contracts:

·Foreign Currency Futures

·Variance Swaps

·Interest Rate Futures

·Equity Options

·Equity Futures

·Credit Derivatives

·Interest Rate Swaps

·Interest Rate Swaptions

·Volatility Futures

·Volatility Options

·Total Return Swaps

Accounting for Derivative Instruments

The Company records its derivative financial instruments in the consolidated condensed balance sheet in “other long-term investments” and “other liabilities” in accordance with GAAP, which requires that all derivative instruments be recognized in the balance sheet at fair value. The change in the fair value of derivative financial instruments is reported either in the statement of income or in other comprehensive income (loss), depending upon whether it qualified for and also has been properly identified as being part of a hedging relationship, and also on the type of hedging relationship that exists.

For a derivative financial instrument to be accounted for as an accounting hedge, it must be identified and documented as such on the date of designation. For cash flow hedges, the effective portion of their realized gain or loss is reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged item impacts earnings. Any remaining gain or loss, the ineffective portion, is recognized in current earnings. For fair value hedge derivatives, their gain or loss as well as the offsetting loss or gain attributable to the hedged risk of the hedged item is recognized in current earnings. Effectiveness of the Company’s hedge relationships is assessed on a quarterly basis.

The Company reports changes in fair values of derivatives that are not part of a qualifying hedge relationship through earnings in the period of change. Changes in the fair value of derivatives that are recognized in current earnings are reported in “Realized investment gains (losses)—Derivative financial instruments”.

Derivative Instruments Designated and Qualifying as Hedging Instruments

Cash-Flow Hedges

·In connection with the issuance of inflation-adjusted funding agreements, the Company has entered into swaps to essentially convert the floating CPI-linked interest rate on these agreements to a fixed

67

rate. The Company pays a fixed rate on the swap and receives a floating rate primarily determined by the period’s change in the CPI. The amounts that are received on the swaps are almost equal to the amounts that are paid on the agreements. None of these positions were held as of June 30, 2015 (Successor Company), as these funding agreements and correlating swaps matured in June of 2015.

Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments

The Company uses various other derivative instruments for risk management purposes that do not qualify for hedge accounting treatment. Changes in the fair value of these derivatives are recognized in earnings during the period of change.

Derivatives Related to Variable Annuity Contracts

·The Company uses equity, interest rate, currency, and volatility futures to mitigate the risk related to certain guaranteed minimum benefits, including GMWB, within its VA products. In general, the cost of such benefits varies with the level of equity and interest rate markets, foreign currency levels, and overall volatility.

·The Company uses equity options, variance swaps, and volatility options to mitigate the risk related to certain guaranteed minimum benefits, including GMWB, within its VA products. In general, the cost of such benefits varies with the level of equity markets and overall volatility.

·The Company uses interest rate swaps and interest rate swaptions to mitigate the risk related to certain guaranteed minimum benefits, including GMWB, within its VA products.

·The Company markets certain VA products with a GMWB rider. The GMWB component is considered an embedded derivative, not considered to be clearly and closely related to the host contract.

Derivatives Related to Fixed Annuity Contracts

·The Company uses equity, futures, and options to mitigate the risk within its fixed indexed annuity products. In general, the cost of such benefits varies with the level of equity and overall volatility.

·The Company uses equity options to mitigate the risk within its fixed indexed annuity products. In general, the cost of such benefits varies with the level of equity markets.

·The Company markets certain fixed indexed annuity products. The FIA component is considered an embedded derivative, not considered to be clearly and closely related to the host contract.

Derivatives Related to Indexed Universal Life Contracts

·The Company uses equity, futures, and options to mitigate the risk within its indexed universal life products. In general, the cost of such benefits varies with the level of equity markets.

·The Company markets certain IUL products. The IUL component is considered an embedded derivative, not considered to be clearly and closely related to the host contract.

Other Derivatives

·The Company uses certain interest rate swaps to mitigate the price volatility of fixed maturities. None of these positions were held as of June 30, 2015 (Successor Company).

·The Company uses various swaps and other types of derivatives to manage risk related to other exposures.

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·The Company is involved in various modified coinsurance and funds withheld arrangements which contain embedded derivatives. Changes in their fair value are recorded in current period earnings. The investment portfolios that support the related modified coinsurance reserves and funds withheld arrangements had fair value changes which substantially offset the gains or losses on these embedded derivatives.

The following table sets forth realized investments gains and losses for the periods shown:

Realized investment gains (losses) - derivative financial instruments

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Derivatives related to VA contracts:
Interest rate futures - VA	$	(14,183	)	$	(14,231	)	$	1,413		$	6,548		$	10,798
Equity futures - VA	(5,267		)	(37,736		)	9,221			(7,259		)	(9,910		)
Currency futures - VA	(8,709		)	(2,572		)	7,778			(2,887		)	(4,165		)
Variance swaps - VA	—			—			—			(823		)	(2,673		)
Equity options - VA	(3,550		)	(25,324		)	3,047			(20,949		)	(33,290		)
Interest rate swaptions - VA	2,547			(8,781		)	9,268			(4,998		)	(14,401		)
Interest rate swaps - VA	(121,167		)	(175,958		)	122,710			45,169			102,537
Embedded derivative - GMWB	132,657			245,917			(207,018		)	(47,389		)	(129,676		)
Total derivatives related to VA contracts	(17,672		)	(18,685		)	(53,581		)	(32,588		)	(80,780		)
Derivatives related to FIA contracts:
Embedded derivative - FIA	290			(2,293		)	1,769			(8,307		)	(6,574		)
Equity futures - FIA	123			307			(184		)	605			950
Volatility futures - FIA	25			29			—			8			8
Equity options - FIA	1,226			5,601			(2,617		)	2,984			3,978
Total derivatives related to FIA contracts	1,664			3,644			(1,032		)	(4,710		)	(1,638		)
Derivatives related to IUL contracts:
Embedded derivative - IUL	1,538			1,795			(486		)	(285		)	(285		)
Equity futures - IUL	9			23			3			—			—
Equity options - IUL	(78		)	62			(115		)	—			—
Total derivatives related to IUL contracts	1,469			1,880			(598		)	(285		)	(285		)
Embedded derivative - Modco reinsurance treaties	109,131			141,322			(68,026		)	(52,202		)	(112,371		)
Other derivatives	11			83			(37		)	(141		)	(202		)
Total realized gains (losses) - derivatives	$	94,603		$	128,244		$	(123,274	)	$	(89,926	)	$	(195,276	)

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The following table sets forth realized investments gains and losses for the Modco trading portfolio that is included in realized investment gains (losses) — all other investments.

Realized investment gains (losses) - all other investments

Successor

Predecessor

Company

Company

For The Three

February 1, 2015

January 1, 2015

For The Three

For The Six

Months Ended

to

to

Months Ended

Months Ended

June 30, 2015

June 30, 2015

January 31, 2015

June 30, 2014

June 30, 2014

(Dollars In Thousands)

(Dollars In Thousands)

Modco trading portfolio(1)

$

(108,741

)

$

(141,901

)

$

73,062

$

60,989

$

127,292

(1) The Company elected to include the use of alternate disclosures for trading activities.

The following table presents the components of the gain or loss on derivatives that qualify as a cash flow hedging relationship.

Gain (Loss) on Derivatives in Cash Flow Hedging Relationship

				Amount and Location of
	Amount of Gains (Losses)			Gains (Losses)
	Deferred in			Reclassified from			Amount and Location of
	Accumulated Other			Accumulated Other			(Losses) Recognized in
	Comprehensive Income			Comprehensive Income			Income (Loss) on
	(Loss) on Derivatives			(Loss) into Income (Loss)			Derivatives
	(Effective Portion)			(Effective Portion)			(Ineffective Portion)
				Benefits and settlement			Realized investment
Successor Company				expenses			gains (losses)
	(Dollars In Thousands)
For The Three Months Ended June 30, 2015
Inflation	$	(95	)	$	(41	)	$	77
Total	$	(95	)	$	(41	)	$	77
Successor Company
February 1, 2015 to June 30, 2015
Inflation	$	(131	)	$	(131	)	$	73
Total	$	(131	)	$	(131	)	$	73
Predecessor Company
January 1, 2015 to January 31, 2015
Inflation	$	13		$	(36	)	$	(7	)
Total	$	13		$	(36	)	$	(7	)
Predecessor Company
For The Three Months Ended June 30, 2014
Inflation	$	(929	)	$	(614	)	$	(165	)
Total	$	(929	)	$	(614	)	$	(165	)
Predecessor Company
For The Six Months Ended June 30, 2014
Inflation	$	(26	)	$	(1,284	)	$	(126	)
Total	$	(26	)	$	(1,284	)	$	(126	)

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The table below present information about the nature and accounting treatment of the Company’s primary derivative financial instruments and the location in and effect on the consolidated condensed financial statements for the periods presented below:

	Successor				Predecessor
	Company				Company
	As of June 30, 2015				As of December 31, 2014
	Notional		Fair		Notional		Fair
	Amount		Value		Amount		Value
	(Dollars In Thousands)				(Dollars In Thousands)
Other long-term investments
Derivatives not designated as hedging instruments:
Interest rate swaps	$	750,000	$	20,606	$	1,550,000	$	50,743
Embedded derivative - Modco reinsurance treaties	65,242		2,321		25,760		1,051
Embedded derivative — GMWB	6,028,811		167,275		2,804,629		66,843
Interest rate futures	445,008		795		27,977		938
Equity futures	646,935		7,906		26,483		427
Currency futures	111,856		1,412		197,648		2,384
Equity options	2,695,658		186,051		1,921,167		163,212
Interest rate swaptions	225,000		8,237		625,000		8,012
Other	791		344		242		360
	$	10,969,301	$	394,947	$	7,178,906	$	293,970
Other liabilities
Cash flow hedges:
Inflation	$	—	$	—	$	40,469	$	142
Derivatives not designated as hedging instruments:
Interest rate swaps	1,225,000		49,179		275,000		3,599
Embedded derivative - Modco reinsurance treaties	2,496,000		223,342		2,562,848		311,727
Embedded derivative - GMWB	4,057,354		107,393		7,038,228		311,969
Embedded derivative - FIA	854,986		85,129		749,933		124,465
Embedded derivative - IUL	28,270		11,902		12,019		6,691
Interest rate futures	334,067		3,453		—		—
Equity futures	10,289		47		385,256		15,069
Currency futures	137,101		2,021		—		—
Equity options	1,255,872		36,100		699,295		47,077
Other	550		5		—		—
	$	10,399,489	$	518,571	$	11,763,048	$	820,739

The Company reclassified the remaining balance of its derivative financial instruments out of accumulated other comprehensive income (loss) into earnings during the three months ended June 30, 2015 (Successor Company) as these derivative financial instruments matured in June of 2015.

17.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 9, Debt and Other Obligations for details of the Company’s repurchase agreement programs.

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The tables below present the derivative instruments by assets and liabilities for the Company as of June 30, 2015 (Successor 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	$	225,011	$	—	$	225,011	$	53,905	$	77,148	$	93,958
Total derivatives, subject to a master netting arrangement or similar arrangement	225,011		—		225,011		53,905		77,148		93,958
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	2,321		—		2,321		—		—		2,321
Embedded derivative - GMWB	167,275		—		167,275		—		—		167,275
Other	340		—		340		—		—		340
Total derivatives, not subject to a master netting arrangement or similar arrangement	169,936		—		169,936		—		—		169,936
Total derivatives	394,947		—		394,947		53,905		77,148		263,894
Total Assets	$	394,947	$	—	$	394,947	$	53,905	$	77,148	$	263,894

					Net Amounts
			Gross		of Liabilities		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	$	90,805	$	—	$	90,805	$	53,905	$	36,900	$	—
Total derivatives, subject to a master netting arrangement or similar arrangement	90,805		—		90,805		53,905		36,900		—
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	223,342		—		223,342		—		—		223,342
Embedded derivative - GMWB	107,393		—		107,393		—		—		107,393
Embedded derivative - FIA	85,129		—		85,129		—		—		85,129
Embedded derivative - IUL	11,902		—		11,902		—		—		11,902
Total derivatives, not subject to a master netting arrangement or similar arrangement	427,766		—		427,766		—		—		427,766
Total derivatives	518,571		—		518,571		53,905		36,900		427,766
Repurchase agreements(1)	602,213		—		602,213		—		—		602,213
Total Liabilities	$	1,120,784	$	—	$	1,120,784	$	53,905	$	36,900	$	1,029,979

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

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The tables below present the derivative instruments by assets and liabilities for the Company as of December 31, 2014 (Predecessor 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	$	225,716	$	—	$	225,716	$	53,612	$	73,935	$	98,169
Total derivatives, subject to a master netting arrangement or similar arrangement	225,716		—		225,716		53,612		73,935		98,169
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	1,051		—		1,051		—		—		1,051
Embedded derivative - GMWB	66,843		—		66,843		—		—		66,843
Other	360		—		360		—		—		360
Total derivatives, not subject to a master netting arrangement or similar arrangement	68,254		—		68,254		—		—		68,254
Total derivatives	293,970		—		293,970		53,612		73,935		166,423
Total Assets	$	293,970	$	—	$	293,970	$	53,612	$	73,935	$	166,423

					Net Amounts
			Gross		of Liabilities		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	$	65,887	$	—	$	65,887	$	53,612	$	12,258	$	17
Total derivatives, subject to a master netting arrangement or similar arrangement	65,887		—		65,887		53,612		12,258		17
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	311,727		—		311,727		—		—		311,727
Embedded derivative - GMWB	311,969		—		311,969		—		—		311,969
Embedded derivative - FIA	124,465		—		124,465		—		—		124,465
Embedded derivative - IUL	6,691		—		6,691		—		—		6,691
Total derivatives, not subject to a master netting arrangement or similar arrangement	754,852		—		754,852		—		—		754,852
Total derivatives	820,739		—		820,739		53,612		12,258		754,869
Repurchase agreements(1)	50,000		—		50,000		—		—		50,000
Total Liabilities	$	870,739	$	—	$	870,739	$	53,612	$	12,258	$	804,869

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

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18.OPERATING SEGMENTS

The Company has several operating segments each having a strategic focus. An operating segment is distinguished by products, channels of distribution, and/or other strategic distinctions. The Company periodically evaluates its operating segments, as prescribed in the ASC Segment Reporting Topic, and makes adjustments to its segment reporting as needed. There were no changes to the Company’s operating segments made or required to be made as a result of the Merger on February 1, 2015. A brief description of each segment follows.

·The Life Marketing segment markets fixed universal life (“UL”), indexed universal life, variable universal life (“VUL”), bank-owned life insurance (“BOLI”), and level premium term insurance (“traditional”) products on a national basis primarily through networks of independent insurance agents and brokers, broker-dealers, financial institutions, and independent marketing organizations.

·The Acquisitions segment focuses on acquiring, converting, and servicing policies acquired from other companies. The segment’s primary focus is on life insurance policies and annuity products that were sold to individuals. The level of the segment’s acquisition activity is predicated upon many factors, including available capital, operating capacity, potential return on capital, and market dynamics. Policies acquired through the Acquisitions segment are typically blocks of business where no new policies are being marketed. Therefore earnings and account values are expected to decline as the result of lapses, deaths, and other terminations of coverage unless new acquisitions are made.

·The Annuities segment markets fixed and VA products. These products are primarily sold through broker-dealers, financial institutions, and independent agents and brokers.

·The Stable Value Products segment sells fixed and floating rate funding agreements directly to the trustees of municipal bond proceeds, money market funds, bank trust departments, and other institutional investors. The segment also issues funding agreements to the FHLB, and markets guaranteed investment contracts (“GICs”) to 401(k) and other qualified retirement savings plans.  Additionally, the Company has contracts outstanding pursuant to a funding agreement-backed notes program registered with the United States Securities and Exchange Commission (the “SEC”) which offered notes to both institutional and retail investors.

·The Asset Protection segment markets extended service contracts and credit life and disability insurance to protect consumers’ investments in automobiles, watercraft, and recreational vehicles. In addition, the segment markets a guaranteed asset protection (“GAP”) product. GAP coverage covers the difference between the loan pay-off amount and an asset’s actual cash value in the case of a total loss.

·The Corporate and Other segment primarily consists of net investment income not assigned to the segments above (including the impact of carrying liquidity) and expenses not attributable to the segments above (including interest on certain corporate debt). This segment includes earnings from several non-strategic or runoff lines of business, various investment-related transactions, the operations of several small subsidiaries, and the repurchase of non-recourse funding obligations.

The Company uses the same accounting policies and procedures to measure segment operating income (loss) and assets as it uses to measure consolidated net income and assets. Segment operating income (loss) is income before income tax, excluding realized gains and losses on investments and derivatives net of the amortization related to DAC, VOBA, and benefits and settlement expenses. Operating earnings exclude changes in the GMWB embedded derivatives (excluding the portion attributed to economic cost), actual GMWB incurred claims and the related amortization of DAC/VOBA attributed to each of these items.

Segment operating income (loss) represents the basis on which the performance of the Company’s business is internally assessed by management. Premiums and policy fees, other income, benefits and settlement expenses, and amortization of DAC/VOBA are attributed directly to each operating segment. Net investment income is allocated based on directly related assets required for transacting the business of that segment. Realized investment gains (losses) and other operating expenses are allocated to the segments in a manner that most appropriately reflects the operations of that segment. Investments and other assets are allocated based on statutory policy liabilities net of associated statutory

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policy assets, while DAC/VOBA and goodwill are shown in the segments to which they are attributable. The goodwill as of June 30, 2015 (Successor Company) was the result of the Dai-ichi Merger. The purchase price was allocated to the segments in proportion to the segment’s respective fair value. The allocated purchase price in excess of the fair value of assets and liabilities of each segment resulted in the establishment of that segment’s goodwill as of the date of the Merger.

There were no significant intersegment transactions during the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the three and six months ended June 30, 2014 (Predecessor Company).

The following tables summarize financial information for the Company’s segments (Predecessor and Successor periods are not comparable):

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Revenues
Life Marketing	$	379,122		$	651,298		$	145,595		$	407,032		$	791,798
Acquisitions	363,985			622,774			139,761			438,244			865,192
Annuities	145,085			248,454			7,884			155,417			300,074
Stable Value Products	16,656			26,998			8,181			27,109			54,928
Asset Protection	69,680			113,707			21,953			70,870			137,253
Corporate and Other	44,233			77,857			17,535			56,671			96,656
Total revenues	$	1,018,761		$	1,741,088		$	340,909		$	1,155,343		$	2,245,901
Segment Operating Income (Loss)
Life Marketing	$	6,651		$	10,076		$	(1,618	)	$	26,349		$	49,834
Acquisitions	37,876			73,946			20,134			64,882			125,878
Annuities	49,189			87,374			13,164			55,258			106,901
Stable Value Products	9,349			15,464			4,529			17,287			34,684
Asset Protection	5,897			9,944			2,420			8,534			14,903
Corporate and Other	(9,881		)	(7,996		)	(10,144		)	(12,555		)	(27,410		)
Total segment operating income	99,081			188,808			28,485			159,755			304,790
Realized investment (losses) gains - investments(1)	(115,706		)	(158,639		)	89,815			74,920			143,453
Realized investment (losses) gains - derivatives	113,535			159,568			(117,118		)	(72,465		)	(160,828		)
Income tax (expense) benefit	(33,070		)	(63,036		)	327			(54,233		)	(95,799		)
Net income	$	63,840		$	126,701		$	1,509		$	107,977		$	191,616
Investment gains (losses)(2)	$	(108,071	)	$	(143,127	)	$	80,672		$	78,688		$	149,211
Less: amortization related to DAC/VOBA and benefits and settlement expenses	7,635			15,512			(9,143		)	3,768			5,758
Realized investment gains (losses) - investments	$	(115,706	)	$	(158,639	)	$	89,815		$	74,920		$	143,453
Derivative gains (losses)(3)	$	94,603		$	128,244		$	(123,274	)	$	(89,926	)	$	(195,276	)
Less: VA GMWB economic cost	(18,932		)	(31,324		)	(6,156		)	(17,461		)	(34,448		)
Realized investment gains (losses) - derivatives	$	113,535		$	159,568		$	(117,118	)	$	(72,465	)	$	(160,828	)

(1) Includes credit related other-than-temporary impairments of $5.7 million and $5.7 million for the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company), respectively.  Includes $0.5 million, $1.5 million, and $3.1 million of credit related other-than-temporary impairments for the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the three and six months ended June 30, 2014 (Predecessor Company), respectively.

(2) Includes realized investment gains (losses) before related amortization.

(3) Includes realized gains (losses) on derivatives before the VA GMWB economic cost.

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	Operating Segment Assets
	As of June 30, 2015 (Successor Company)
	(Dollars In Thousands)
	Life							Stable Value
	Marketing		Acquisitions			Annuities		Products
Investments and other assets	$	13,170,634	$	20,223,282		$	20,271,514	$	1,737,745
Deferred policy acquisition costs and value of business acquired	1,051,702		(190,193		)	490,973		—
Other intangibles	329,102		40,936			203,446		9,722
Goodwill	203,543		14,524			336,677		113,813
Total assets	$	14,754,981	$	20,088,549		$	21,302,610	$	1,861,280
	Asset		Corporate					Total
	Protection		and Other			Adjustments		Consolidated
Investments and other assets	$	858,958	$	10,235,479		$	11,034	$	66,508,646
Deferred policy acquisition costs and value of business acquired	41,444		—			—		1,393,926
Other intangibles	82,581		—			—		665,787
Goodwill	67,155		—			—		735,712
Total assets	$	1,050,138	$	10,235,479		$	11,034	$	69,304,071
	Operating Segment Assets
	As of December 31, 2014 (Predecessor Company)
	(Dollars In Thousands)
	Life							Stable Value
	Marketing		Acquisitions			Annuities		Products
Investments and other assets	$	13,858,491	$	19,858,284		$	20,783,373	$	1,958,867
Deferred policy acquisition costs and value of business acquired	1,973,156		600,482			684,574		621
Goodwill	10,192		29,419			—		—
Total assets	$	15,841,839	$	20,488,185		$	21,467,947	$	1,959,488
	Asset		Corporate					Total
	Protection		and Other			Adjustments		Consolidated
Investments and other assets	$	927,202	$	9,682,362		$	14,792	$	67,083,371
Deferred policy acquisition costs and value of business acquired	35,418		319			—		3,294,570
Goodwill	62,671		83			—		102,365
Total assets	$	1,025,291	$	9,682,764		$	14,792	$	70,480,306

19.SUBSEQUENT EVENTS

The Company has evaluated the effects of events subsequent to June 30, 2015 (Successor Company), and through the date we filed our consolidated condensed financial statements with the United States Securities and Exchange Commission. All accounting and disclosure requirements related to subsequent events are included in our consolidated condensed financial statements.

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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with our consolidated condensed financial statements included under Part I, Item 1, Financial Statements (Unaudited), of this Quarterly Report on Form 10-Q and our audited consolidated financial statements for the year ended December 31, 2014 (Predecessor Company), included in our Annual Report on Form 10-K.

For a more complete understanding of our business and current period results, please read the following MD&A in conjunction with our latest Annual Report on Form 10-K and other filings with the United States Securities and Exchange Commission (the “SEC”).

Certain reclassifications have been made in the previously reported financial statements and accompanying notes to make the prior period amounts comparable to those of the current period. Such reclassifications had no effect on previously reported net income or shareowner’s equity.

FORWARD-LOOKING STATEMENTS — CAUTIONARY LANGUAGE

This report reviews our financial condition and results of operations, including our liquidity and capital resources. Historical information is presented and discussed, and where appropriate, factors that may affect future financial performance are also identified and discussed. Certain statements made in this report include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statement that may predict, forecast, indicate, or imply future results, performance, or achievements instead of historical facts and may contain words like “believe,” “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “plan,” “will,” “shall,” “may,” and other words, phrases, or expressions with similar meaning. Forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from the results contained in the forward-looking statements, and we cannot give assurances that such statements will prove to be correct. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise. For more information about the risks, uncertainties, and other factors that could affect our future results, please refer to Part I, Item 2, Risks and Uncertainties and Part II, Item 1A, Risk Factors, of this report, as well as Part I, Item 1A, Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (Predecessor Company).

IMPORTANT INVESTOR INFORMATION

We file reports with the SEC, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other reports as required. The public may read and copy any materials we file with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. We are an electronic filer and the SEC maintains an internet site at www.sec.gov that contains these reports and other information filed electronically by us. We make available through our website, www.protective.com, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports as soon as reasonably practicable after such materials are electronically filed with or furnished to the SEC. We will furnish such documents to anyone who requests such copies in writing. Requests for copies should be directed to: Financial Information, Protective Life Corporation, P. O. Box 2606, Birmingham, Alabama 35202, Telephone (205) 268-3912, Fax (205) 268-3642.

We also make available to the public current information, including financial information, regarding the Company and our affiliates on the Financial Information page of our website, www.protective.com. We encourage investors, the media and others interested in us and our affiliates to review the information we post on our website. The information found on our website is not part of this or any other report filed with or furnished to the SEC.

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OVERVIEW

Our business

On February 1, 2015, Protective Life Corporation (the “Company”) became a wholly owned subsidiary of The Dai-ichi Life Insurance Company, Limited, a kabushiki kaisha organized under the laws of Japan (“Dai-ichi Life”), when DL Investment (Delaware), Inc., a wholly owned subsidiary of Dai-ichi Life, merged with and into the Company. Prior to February 1, 2015, the Company’s stock was publicly traded on the New York Stock Exchange. Subsequent to the Merger, the Company remains an SEC registrant for financial reporting purposes in the United States. The Company, which is headquartered in Birmingham, Alabama, operates as a holding company for its insurance and other subsidiaries that provide financial services primarily in the United States through the production, distribution, and administration of insurance and investment products. Founded in 1907, Protective Life Insurance Company (“PLICO”) is our largest operating subsidiary. Unless the context otherwise requires, the “Company,” “we,” “us,” or “our” refers to the consolidated group of Protective Life Corporation and our subsidiaries.

We have several operating segments, each having a strategic focus. An operating segment is distinguished by products, channels of distribution, and/or other strategic distinctions. We periodically evaluate our operating segments as prescribed in the Accounting Standards Codification (“ASC”) Segment Reporting Topic, and make adjustments to our segment reporting as needed. There were no changes to our operating segments made or required to be made as a result of the Merger on February 1, 2015.

Our operating segments are Life Marketing, Acquisitions, Annuities, Stable Value Products, Asset Protection, and Corporate and Other.

·Life Marketing - We market fixed universal life (“UL”), indexed universal life (“IUL”), variable universal life (“VUL”), bank-owned life insurance (“BOLI”), and level premium term insurance (“traditional”) products on a national basis primarily through networks of independent insurance agents and brokers, broker-dealers, financial institutions, and independent marketing organizations.

·Acquisitions - We focus on acquiring, converting, and servicing policies from other companies. This segment’s primary focus is on life insurance policies and annuity products that were sold to individuals. The level of the segment’s acquisition activity is predicated upon many factors, including available capital, operating capacity, potential return on capital, and market dynamics. Policies acquired through the Acquisitions segment are typically blocks of business where no new policies are being marketed. Therefore earnings and account values are expected to decline as the result of lapses, deaths, and other terminations of coverage unless new acquisitions are made.

·Annuities - We market fixed and variable annuity (“VA”) products. These products are primarily sold through broker-dealers, financial institutions, and independent agents and brokers.

·Stable Value Products - We sell fixed and floating rate funding agreements directly to the trustees of municipal bond proceeds, money market funds, bank trust departments, and other institutional investors. The segment also issues funding agreements to the Federal Home Loan Bank (“FHLB”), and markets guaranteed investment contracts (“GICs”) to 401(k) and other qualified retirement savings plans. Additionally, we have contracts outstanding pursuant to a funding agreement-backed notes program registered with the SEC which offered notes to both institutional and retail investors.

·Asset Protection - We market extended service contracts and credit life and disability insurance to protect consumers’ investments in automobiles, watercraft, and recreational vehicles. In addition, the segment markets a guaranteed asset protection (“GAP”) product. GAP coverage covers the difference between the loan pay-off amount and an asset’s actual cash value in the case of a total loss.

·Corporate and Other - This segment primarily consists of net investment income not assigned to the segments above (including the impact of carrying liquidity) and expenses not attributable to the segments above (including interest on certain corporate debt). This segment includes earnings from several non-

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strategic or runoff lines of business, various investment-related transactions, the operations of several small subsidiaries, and the repurchase of non-recourse funding obligations.

RISKS AND UNCERTAINTIES

The factors which could affect our future results include, but are not limited to, general economic conditions and the following risks and uncertainties:

Risks Related to the Dai-ichi Merger and our Status as a Subsidiary of Dai-ichi Life

·uncertainty following the Merger could adversely affect our business and operations;

·our debt ratings and the financial strength ratings of our insurance subsidiaries may be adversely affected by our being a subsidiary of Dai-ichi Life;

·we are controlled by Dai-ichi Life, which has the ability to make important decisions affecting our business;

General

·exposure to the risks of natural and man-made catastrophes, diseases, epidemics, pandemics, malicious acts, terrorist acts and climate change could adversely affect our operations and results;

·a disruption affecting the electronic systems of the Company or those on whom the Company relies could adversely affect our business, financial condition and results of operations;

·confidential information maintained in the systems of the Company or other parities upon which the Company relies could be compromised or misappropriated, damaging our business and reputation and adversely affecting our financial condition and results of operations;

·our results and financial condition may be negatively affected should actual experience differ from management’s assumptions and estimates;

·we may not realize our anticipated financial results from our acquisitions strategy;

·assets allocated to the MONY Closed Block benefit only the holders of certain policies; adverse performance of Closed Block assets or adverse experience of Closed Block liabilities may negatively affect us;

·we are dependent on the performance of others;

·our risk management policies, practices, and procedures could leave us exposed to unidentified or unanticipated risks, which could negatively affect our business or result in losses;

·our strategies for mitigating risks arising from our day-to-day operations may prove ineffective resulting in a material adverse effect on our results of operations and financial condition;

Financial environment

·interest rate fluctuations and sustained periods of low interest rates could negatively affect our interest earnings and spread income, or otherwise impact our business;

·our investments are subject to market and credit risks, which could be heightened during periods of extreme volatility or disruption in financial and credit markets;

·equity market volatility could negatively impact our business;

·our use of derivative financial instruments within our risk management strategy may not be effective or sufficient;

·credit market volatility or disruption could adversely impact our financial condition or results from operations;

·our ability to grow depends in large part upon the continued availability of capital;

·we could be adversely affected by a ratings downgrade or other negative action by a ratings organization;

·we could be forced to sell investments at a loss to cover policyholder withdrawals;

·disruption of the capital and credit markets could negatively affect our ability to meet our liquidity and financing needs;

·difficult general economic conditions could materially adversely affect our business and results of operations;

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·we may be required to establish a valuation allowance against our deferred tax assets, which could materially adversely affect our results of operations, financial condition, and capital position;

·we could be adversely affected by an inability to access our credit facility;

·we could be adversely affected by an inability to access FHLB lending;

·our financial condition or results of operations could be adversely impacted if our assumptions regarding the fair value and future performance of our investments differ from actual experience;

·adverse actions of certain funds or their advisers could have a detrimental impact on our ability to sell our variable life and annuity products, or maintain current levels of assets in those products;

·the amount of statutory capital that we have and the amount of statutory capital that we must hold to maintain our financial strength and credit ratings and meet other requirements can vary significantly from time to time and is sensitive to a number of factors outside of our control;

·we operate as a holding company and depend on the ability of our subsidiaries to transfer funds to us to meet our obligations and pay dividends;

Industry

·we are highly regulated and are subject to routine audits, examinations and actions by regulators, law enforcement agencies, and self-regulatory organizations;

·changes to tax law or interpretations of existing tax law could adversely affect our ability to compete with non-insurance products or reduce the demand for certain insurance products;

·financial services companies are frequently the targets of legal proceedings, including class action litigation, which could result in substantial judgments;

·the financial services and insurance industries are sometimes the target of law enforcement investigations and the focus of increased regulatory scrutiny;

·new accounting rules, changes to existing accounting rules, or the grant of permitted accounting practices to competitors could negatively impact us;

·use of reinsurance introduces variability in our statements of income;

·our reinsurers could fail to meet assumed obligations, increase rates, terminate agreements, or be subject to adverse developments that could affect us;

·our policy claims fluctuate from period to period resulting in earnings volatility;

Competition

·we operate in a mature, highly competitive industry, which could limit our ability to gain or maintain our position in the industry and negatively affect profitability;

·our ability to maintain competitive unit costs is dependent upon the level of new sales and persistency of existing business; and

·we may not be able to protect our intellectual property and may be subject to infringement claims.

For more information about the risks, uncertainties, and other factors that could affect our future results, please see Part II, Item 1A of this report and our Annual Report on Form 10-K.

CRITICAL ACCOUNTING POLICIES

Our accounting policies require the use of judgments relating to a variety of assumptions and estimates, including, but not limited to expectations of current and future mortality, morbidity, persistency, expenses, and interest rates, as well as expectations around the valuations of securities. Because of the inherent uncertainty when using the assumptions and estimates, the effect of certain accounting policies under different conditions or assumptions could be materially different from those reported in the consolidated condensed financial statements. For a complete listing of our critical accounting policies, refer to our Annual Report on Form 10-K for the year ended December 31, 2014 (Predecessor Company). Certain of our accounting policies were amended in conjunction with the Dai-ichi Merger. Please refer to Note 2, Summary of Significant Accounting Policies, included in this Form 10-Q for more information.

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RESULTS OF OPERATIONS

We use the same accounting policies and procedures to measure segment operating income (loss) and assets as we use to measure consolidated net income and assets. Segment operating income (loss) is income before income tax, excluding realized gains and losses on investments and derivatives, net of the amortization related to deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), and benefits and settlement expenses. Segment operating income (loss) also excludes changes in the guaranteed minimum withdrawal benefits (“GMWB”) embedded derivatives (excluding the portion attributed to economic cost), actual GMWB incurred claims and the related amortization of DAC attributed to each of these items.

Segment operating income (loss) represents the basis on which the performance of our business is internally assessed by management. Premiums and policy fees, other income, benefits and settlement expenses, and amortization of DAC/VOBA are attributed directly to each operating segment. Net investment income is allocated based on directly related assets required for transacting the business of that segment. Realized investment gains (losses) and other operating expenses are allocated to the segments in a manner that most appropriately reflects the operations of that segment. Investments and other assets are allocated based on statutory policy liabilities net of associated statutory policy assets, while DAC/VOBA and goodwill are shown in the segments to which they are attributable.

However, segment operating income (loss) should not be viewed as a substitute for net income calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In addition, our segment operating income (loss) measures may not be comparable to similarly titled measures reported by other companies.

We periodically review and update as appropriate our key assumptions on products using the ASC Financial Services-Insurance Topic, including future mortality, expenses, lapses, premium persistency, benefit utilization, investment yields, interest spreads, and equity market returns. Changes to these assumptions result in adjustments which increase or decrease DAC/VOBA amortization and/or benefits and expenses. The periodic review and updating of assumptions is referred to as “unlocking”. When referring to DAC/VOBA amortization or unlocking on products covered under the ASC Financial Services-Insurance Topic, the reference is to changes in all balance sheet components amortized over estimated gross profits.

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The following table presents a summary of results and reconciles segment operating income (loss) to consolidated net income (Predecessor and Successor periods are not comparable):

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Segment Operating Income (Loss)
Life Marketing	$	6,651		$	10,076		$	(1,618	)	$	26,349		$	49,834
Acquisitions	37,876			73,946			20,134			64,882			125,878
Annuities	49,189			87,374			13,164			55,258			106,901
Stable Value Products	9,349			15,464			4,529			17,287			34,684
Asset Protection	5,897			9,944			2,420			8,534			14,903
Corporate and Other	(9,881		)	(7,996		)	(10,144		)	(12,555		)	(27,410		)
Total segment operating income	99,081			188,808			28,485			159,755			304,790
Realized investment gains (losses) - investments(1)	(115,706		)	(158,639		)	89,815			74,920			143,453
Realized investment gains (losses) - derivatives	113,535			159,568			(117,118		)	(72,465		)	(160,828		)
Income tax (expense) benefit	(33,070		)	(63,036		)	327			(54,233		)	(95,799		)
Net income	$	63,840		$	126,701		$	1,509		$	107,977		$	191,616
Investment gains (losses)(2)	$	(108,071	)	$	(143,127	)	$	80,672		$	78,688		$	149,211
Less: amortization related to DAC/VOBA and benefits and settlement expenses	7,635			15,512			(9,143		)	3,768			5,758
Realized investment gains (losses) - investments	$	(115,706	)	$	(158,639	)	$	89,815		$	74,920		$	143,453
Derivative gains (losses) (3)	$	94,603		$	128,244		$	(123,274	)	$	(89,926	)	$	(195,276	)
Less: VA GMWB economic cost	(18,932		)	(31,324		)	(6,156		)	(17,461		)	(34,448		)
Realized investment gains (losses) - derivatives	$	113,535		$	159,568		$	(117,118	)	$	(72,465	)	$	(160,828	)

(1)Includes credit related other-than-temporary impairments of $5.7 million and $5.7 million for the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company), respectively. Includes $0.5 million, $1.5 million, and $3.1 million of credit related other-than-temporary impairments for the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for three and six months ended June 30, 2014 (Predecessor Company), respectively.

(2)Includes realized investment gains (losses) before related amortization.

(3)Includes realized gains (losses) on derivatives before the VA GMWB economic cost.

For The Three Months Ended June 30, 2015 (Successor Company)

Net income was $63.8 million and operating income was $99.1 million for the three months ended June 30, 2015.

We experienced net realized losses of $13.5 million for the three months ended June 30, 2015. The losses realized were primarily related to $5.7 million of other-than-temporary impairment credit-related losses and net losses of $17.7 million of derivatives related to variable annuity contracts. Partially offsetting these losses were $3.4 million of gains related to investment securities sale activity, net gains of $1.7 million of derivatives related to FIA contracts, net gains of $1.5 million related to IUL contracts, $0.3 million of gains related to the net activity of the modified coinsurance portfolio, and net gains of $3.0 million loss related to other investment and derivative activity.

·Life Marketing segment operating income was $6.7 million which consisted of universal life operating income of $10.2 million, traditional life operating income of $0.4 million, and an operating loss of $4.0 million in other lines.

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·Acquisitions segment operating income was $37.9 million. This included expected runoff of the in force blocks of business.

·Annuities segment operating income was $49.2 million which included $23.4 million of fixed annuity operating earnings and $29.8 million of variable annuity operating earnings. The fixed annuity results were negatively impacted by $3.2 million of unfavorable single premium immediate annuities (“SPIA”) mortality.

·Stable Value Products segment operating income of $9.3 million was primarily due to activity in average account values, operating spread, and participating mortgage income. Participating mortgage income was $0.5 million and the adjusted operating spread, which excludes participating income, was 183 basis points.

·Asset Protection segment operating income was $5.9 million which consisted of service contract earnings of $3.5 million, GAP product earnings of $1.5 million, and credit insurance earnings of $0.9 million.

·The Corporate and Other segment’s $9.9 million operating loss was primarily due to $47.6 million of other operating expense which is primarily interest expense and corporate overhead expenses. These expenses were partially offset by $37.1 million of investment income which represents income on assets supporting our equity capital.

For The Period of February 1, 2015 to June 30, 2015 (Successor Company)

Net income was $126.7 million and operating income was $188.8 million for the period of February 1, 2015 to June 30, 2015.

We experienced net realized losses of $14.9 million for the period of February 1, 2015 to June 30, 2015. The losses realized were primarily related to $5.7 million of other-than-temporary impairment credit-related losses, net losses of $18.7 million of derivatives related to variable annuity contracts, and $0.6 million of losses related to the net activity of the modified coinsurance portfolio. Partially offsetting these losses were $3.7 million of gains related to investment securities sale activity, net gains of $3.6 million of derivatives related to FIA contracts, and net gains of $1.9 million related to IUL contracts, and net gains of $0.9 million loss related to other investment and derivative activity.

·Life Marketing segment operating income was $10.1 million which consisted of universal life operating income of $19.8 million, traditional life operating loss of $2.5 million, and an operating loss of $7.2 million in other lines.

·Acquisitions segment operating income was $73.9 million. This included expected runoff of the in force blocks of business.

·Annuities segment operating income was $87.4 million which included $44.4 million of fixed annuity operating earnings and $49.7 million of variable annuity operating earnings. The fixed annuity results were positively impacted by $4.8 million of favorable SPIA mortality.

·Stable Value Products segment operating income of $15.5 million was primarily due to activity in average account values, operating spread, and participating mortgage income. Participating mortgage income was $1.7 million and the adjusted operating spread, which excludes participating income, was 171 basis points.

·Asset Protection segment operating income was $9.9 million which consisted of service contract earnings of $6.0 million, GAP product earnings of $2.6 million, and credit insurance earnings of $1.3 million.

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·The Corporate and Other segment’s $8.0 million operating loss was primarily due to $78.3 million of other operating expense which is primarily interest expense and corporate overhead expenses. These expenses were partially offset by $69.7 million of investment income which represents income on assets supporting our equity capital.

For The Period of January 1, 2015 to January 31, 2015 (Predecessor Company)

Net income was $1.5 million and operating income was $28.5 million for the period of January 1, 2015 to January 31, 2015.

We experienced net realized losses of $42.6 million for the period of January 1, 2015 to January 31, 2015. The losses realized for the period of January 1, 2015 to January 31, 2015, were primarily related to $0.5 million for other-than-temporary impairment credit-related losses, net losses of $53.6 million of derivatives related to variable annuity contracts, net losses of $1.0 million of derivatives related to FIA contracts, and net losses of $0.6 million of derivatives related to IUL contracts. Partially offsetting these losses were $6.9 million of gains related to investment securities sale activity, $5.0 million of gains related to the net activity of the modified coinsurance portfolio, and net gains of $1.2 million related to other investment and derivative activity.

·Life Marketing segment operating loss was $1.6 million. Included in that amount was a traditional life operating loss of $3.4 million, universal life earnings of $1.2 million, and operating earnings of $0.6 million in other lines.

·Acquisitions segment operating income was $20.1 million. This included expected runoff of the in force blocks of business.

·Annuities segment operating income was $13.2 million. Included in that amount was $2.8 million of unfavorable SPIA mortality results and $2.3 million of unfavorable unlocking, primarily related to the VA line of business.

·Stable Value Products segment operating income of $4.5 million was primarily due activity in average account values, operating spread, and participating mortgage income.  Participating mortgage income was $0.1 million and the adjusted operating spread, which excludes participating income, was 276 basis points.

·Asset Protection segment operating income was $2.4 million which consisted of $1.3 million in service contract earnings, $0.9 million in GAP product earnings, and credit insurance earnings of $0.2 million.

·The Corporate and Other segment’s $10.1 million operating loss was primarily due to $20.5 million of other operating expense which is primarily interest expense and corporate overhead expenses. These expenses were partially offset by $10.7 million of investment income which represents income on assets supporting our equity capital.

For The Three Months Ended June 30, 2014 (Predecessor Company)

Net income was $108.0 million and operating income was $159.8 million for the three months ended June 30, 2014.

We experienced net realized losses of $11.2 million for the three months ended June 30, 2014. The losses realized for the three months ended June 30, 2014, were primarily related to $1.5 million for other-than-temporary impairment credit-related losses, net losses of $32.6 million of derivatives related to variable annuity contracts, net losses of $4.7 million of derivatives related to FIA contracts, and $1.5 million of losses related to other investment and derivative activity. Partially offsetting these losses were gains of $20.2 million related to investment securities sale activity and $8.8 million of gains related to the net activity of the modified coinsurance portfolio.

·Life Marketing segment operating income was $26.3 million. Included in that amount was traditional life operating income of $17.7 million, universal life earnings of $7.7 million, and operating earnings of $1.0 million in other lines.

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·Acquisitions segment operating income was $64.9 million. This included expected runoff of the in force blocks of business.

·Annuities segment operating income was $55.3 million. Included in that amount were $7.6 million of unfavorable SPIA mortality results and $3.2 million of favorable unlocking.

·Stable Value Products segment operating income of $17.3 million was primarily due activity in average account values, operating spread, and participating mortgage income. Participating mortgage income was $0.5 million and the adjusted operating spread, which excludes participating income, was 269 basis points.

·Asset Protection segment operating income was $8.5 million which consisted of $4.6 million in service contract earnings, $3.0 million in GAP product earnings, and credit insurance earnings of $0.9 million.

·The Corporate and Other segment’s $12.6 million operating loss was primarily due to $59.4 million of other operating expense which is primarily interest expense and corporate overhead expenses. These expenses were partially offset by $43.8 million of investment income which represents income on assets supporting our equity capital.

For The Six Months Ended June 30, 2014 (Predecessor Company)

Net income was $191.6 million and operating income was $304.8 million for the six months ended June 30, 2014.

We experienced net realized losses of $46.1 million for the six months ended June 30, 2014. The losses realized for the six months ended June 30, 2014, were primarily related to $3.1 million for other-than-temporary impairment credit-related losses, net losses of $80.8 million of derivatives related to variable annuity contracts, net losses of $1.6 million of derivatives related to FIA contracts, and $3.1 million of losses related to other investment and derivative activity. Partially offsetting these losses were gains of $27.6 million related to investment securities sale activity and $14.9 million of gains related to the net activity of the modified coinsurance portfolio.

·Life Marketing segment operating income was $49.8 million. Included in that amount was traditional life operating income of $33.2 million, universal life earnings of $11.5 million, and operating earnings of $5.0 million in other lines.

·Acquisitions segment operating income was $125.9 million. This included expected runoff of the in force blocks of business.

·Annuities segment operating income was $106.9 million. Included in that amount was $15.0 million of unfavorable SPIA mortality results and $4.5 million of favorable unlocking, primarily related to the VA line of business.

·Stable Value Products segment operating income of $34.7 million was primarily due activity in average account values, operating spread, and participating mortgage income. Participating mortgage income was $1.0 million and the adjusted operating spread, which excludes participating income, was 266 basis points.

·Asset Protection segment operating income was $14.9 million which consisted of $8.4 million in service contract earnings, $5.4 million in GAP product earnings, and credit insurance earnings of $1.1 million.

·The Corporate and Other segment’s $27.4 million operating loss was primarily due to $111.6 million of other operating expense which is primarily interest expense and corporate overhead expenses. These expenses were partially offset by $80.9 million of investment income which represents income on assets supporting our equity capital.

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Life Marketing

Segment Results of Operations

Segment results were as follows:

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
REVENUES
Gross premiums and policy fees	$	439,717		$	683,395		$	136,068		$	437,093		$	849,204
Reinsurance ceded	(211,296		)	(279,679		)	(51,142		)	(206,056		)	(400,075		)
Net premiums and policy fees	228,421			403,716			84,926			231,037			449,129
Net investment income	120,556			198,811			47,460			136,769			270,732
Other income	30,992			49,073			12,810			30,589			63,102
Total operating revenues	379,969			651,600			145,196			398,395			782,963
Realized gains (losses) - investments	(2,315		)	(2,182		)	997			8,922			9,120
Realized gains (losses) - derivatives	1,468			1,880			(598		)	(285		)	(285		)
Total revenues	379,122			651,298			145,595			407,032			791,798
BENEFITS AND EXPENSES
Benefits and settlement expenses	291,619			514,349			123,525			309,861			603,666
Amortization of deferred policy acquisition costs and value of business acquired	33,428			53,575			4,584			17,410			41,442
Other operating expenses	48,271			73,600			18,705			44,775			88,021
Operating benefits and settlement expenses	373,318			641,524			146,814			372,046			733,129
Amortization related to benefits and settlement expenses	1,110			1,519			(346		)	1,706			1,711
Amortization of DAC/VOBA related to realized gains (losses) - investments	10			41			229			3,326			3,355
Total benefits and expenses	374,438			643,084			146,697			377,078			738,195
INCOME (LOSS) BEFORE INCOME TAX	4,684			8,214			(1,102		)	29,954			53,603
Less: realized gains (losses)	(847		)	(302		)	399			8,637			8,835
Less: amortization related to benefits and settlement expenses	(1,110		)	(1,519		)	346			(1,706		)	(1,711		)
Less: related amortization of DAC/VOBA	(10		)	(41		)	(229		)	(3,326		)	(3,355		)
OPERATING INCOME (LOSS)	$	6,651		$	10,076		$	(1,618	)	$	26,349		$	49,834

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The following table summarizes key data for the Life Marketing segment:

	Successor				Predecessor
	Company				Company
	For The Three		February 1, 2015		January 1, 2015		For The Three		For The Six
	Months Ended		to		to		Months Ended		Months Ended
	June 30, 2015		June 30, 2015		January 31, 2015		June 30, 2014		June 30, 2014
	(Dollars In Thousands)				(Dollars In Thousands)
Sales By Product
Traditional life	$	101	$	211	$	42	$	101	$	250
Universal life	39,860		63,346		11,473		32,703		60,884
BOLI	15		15		—		22		22
	$	39,976	$	63,572	$	11,515	$	32,826	$	61,156
Sales By Distribution Channel
Independent agents	$	29,690	$	47,600	$	9,027	$	24,843	$	46,358
Stockbrokers / banks	8,552		13,444		2,169		7,262		13,486
BOLI / other	1,734		2,528		319		721		1,312
	$	39,976	$	63,572	$	11,515	$	32,826	$	61,156
Average Life Insurance In-force(1)
Traditional	$	384,532,759	$	387,972,086	$	391,411,413	$	405,489,033	$	411,306,190
Universal life	166,142,960		159,730,340		153,317,720		131,860,833		124,539,015
	$	550,675,719	$	547,702,426	$	544,729,133	$	537,349,866	$	535,845,205
Average Account Values
Universal life	$	7,287,291	$	7,269,132	$	7,250,973	$	7,146,126	$	7,105,122
Variable universal life	599,483		586,870		574,257		549,072		526,485
	$	7,886,774	$	7,856,002	$	7,825,230	$	7,695,198	$	7,631,607

(1) Amounts are not adjusted for reinsurance ceded.

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Operating expenses detail

Other operating expenses for the segment were as follows:

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Insurance companies:
First year commissions	$	42,762		$	71,431		$	14,109		$	39,978		$	73,045
Renewal commissions	8,544			13,396			2,513			7,884			14,666
First year ceding allowances	(927		)	(1,435		)	(49		)	(587		)	(893		)
Renewal ceding allowances	(39,288		)	(68,140		)	(12,364		)	(25,973		)	(62,816		)
General & administrative	52,789			84,763			17,467			45,416			87,565
Taxes, licenses, and fees	7,736			12,910			2,508			7,387			13,165
Other operating expenses incurred	71,616			112,925			24,184			74,105			124,732
Less: commissions, allowances & expenses capitalized	(53,791		)	(87,875		)	(17,059		)	(58,697		)	(97,028		)
Other insurance company operating expenses	17,825			25,050			7,125			15,408			27,704
Marketing companies:
Commissions	22,552			35,439			8,233			21,629			44,650
Other operating expenses	7,894			13,111			3,347			7,738			15,667
Other marketing company operating expenses	30,446			48,550			11,580			29,367			60,317
Other operating expenses	$	48,271		$	73,600		$	18,705		$	44,775		$	88,021

For The Three Months Ended June 30, 2015 (Successor Company)

Net premiums and policy fees

Net premiums and policy fees were $228.4 million for the three months ended June 30, 2015.  Included in this amount are traditional life net premiums of $113.4 million and universal life policy fees of $114.9 million.

Net investment income

Net investment income was $120.6 million for the three months ended June 30, 2015. Included in this amount is traditional life net investment income of $16.1 million and universal life investment income of $101.3 million.

Other income

Other income was $31.0 million for the three months ended June 30, 2015. This amount is primarily comprised of revenue in the segment’s non-insurance operations.

Benefits and settlement expenses

Benefit and settlement expenses were $291.6 million for the three months ended June 30, 2015. This amount includes traditional life benefit and settlement expenses of $91.3 million and universal life benefit and settlement expenses of $200.0 million, including $78.6 million of interest on funds for universal life policies.

Amortization of DAC and VOBA

DAC and VOBA amortization was $33.4 million for the three months ended June 30, 2015.

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Other operating expenses

Other operating expenses were $48.3 million for the three months ended June 30, 2015. Other operating expenses for the insurance companies reflect commissions of $51.3 million, general and administrative expenses of $52.8 million, and taxes, licenses, and fees of $7.7 million, partly offset by ceding allowances of $40.2 million and capitalization of $53.8 million. Marketing company expenses were $30.4 million for the three months ended June 30, 2015.

Sales

Sales for the segment were $40.0 million for the three months ended June 30, 2015, comprised primarily of universal life sales.

For The Period of February 1, 2015 to June 30, 2015 (Successor Company)

Net premiums and policy fees

Net premiums and policy fees were $403.7 million for the period of February 1, 2015 to June 30, 2015.  Included in this amount are traditional life net premiums of $212.9 million and universal life policy fees of $190.6 million.

Net investment income

Net investment income was $198.8 million for the period of February 1, 2015 to June 30, 2015. Included in this amount is traditional life net investment income of $26.0 million and universal life investment income of $167.4 million.

Other income

Other income was $49.1 million for the period of February 1, 2015 to June 30, 2015. This amount is primarily comprised of revenue in the segment’s non-insurance operations.

Benefits and settlement expenses

Benefit and settlement expenses were $514.3 million for the period of February 1, 2015 to June 30, 2015.  This amount includes traditional life benefit and settlement expenses of $182.6 million and universal life benefit and settlement expenses of $331.5 million, including $131.6 million of interest on funds for universal life policies.

Amortization of DAC and VOBA

DAC and VOBA amortization was $53.6 million for the period of February 1, 2015 to June 30, 2015.

Other operating expenses

Other operating expenses were $73.6 million for the period of February 1, 2015 to June 30, 2015. Other operating expenses for the insurance companies reflect commissions of $84.8 million, general and administrative expenses of $84.8 million, and taxes, licenses, and fees of $12.9 million, partly offset by ceding allowances of $69.6 million and capitalization of $87.9 million. Marketing company expenses were $48.6 million for the period of February 1, 2015 to June 30, 2015.

Sales

Sales for the segment were $63.6 million for the period of February 1, 2015 to June 30, 2015, comprised primarily of universal life sales.

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For The Period of January 1, 2015 to January 31, 2015 (Predecessor Company)

Net premiums and policy fees

Net premiums and policy fees were $84.9 million for the period of January 1, 2015 to January 31, 2015. This amount is comprised of traditional life net premiums of $41.8 million and universal life policy fees of $43.1 million.

Net investment income

Net investment income was $47.5 million for the period of January 1, 2015 to January 31, 2015. Included in this amount is traditional life net investment income of $6.3 million and universal life investment income of $40.1 million.

Other income

Other income was $12.8 million for the period of January 1, 2015 to January 31, 2015. This amount is primarily comprised of revenue in the segment’s non-insurance operations.

Benefits and settlement expenses

Benefit and settlement expenses were $123.5 million for the period of January 1, 2015 to January 31, 2015. This amount includes traditional life benefit and settlement expenses of $44.7 million, including an elevated level of claims and universal life benefit and settlement expenses of $77.7 million, partly comprised of $25.7 million of interest on funds for universal life policies.

Amortization of DAC and VOBA

DAC and VOBA amortization was $4.6 million for the period of January 1, 2015 to January 31, 2015.

Other operating expenses

Other operating expenses were $18.7 million for the period of January 1, 2015 to January 31, 2015.  Other operating expenses for the insurance companies reflect commissions of $16.6 million, general and administrative expenses of $17.5 million, and taxes of $2.5 million, partly offset by ceding allowances of $12.4 million and capitalization of $17.1 million.  Marketing company expenses were $11.6 million for the period of January 1, 2015 to January 31, 2015.

Sales

Sales for the segment were $11.5 million for the period of January 1, 2015 to January 31, 2015, almost entirely comprised of universal life sales.

For The Three Months Ended June 30, 2014 (Predecessor Company)

Net premiums and policy fees

Net premiums and policy fees were $231.0 million for the three months ended June 30, 2014. This amount is comprised of traditional life net premiums of $102.9 million and universal life policy fees of $128.0 million.

Net investment income

Net investment income in the segment was $136.8 million for the three months ended June 30, 2014. Included in this amount is traditional life net investment income of $17.0 million and universal life investment income of $116.1 million.

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Other income

Other income was $30.6 million for the three months ended June 30, 2014, primarily due to revenue in the segment’s non-insurance operations.

Benefits and settlement expenses

Benefits and settlement expenses were $309.9 million for the three months ended June 30, 2014. This amount includes traditional life benefit and settlement expenses of $81.3 million and universal life benefit and settlement expenses of $229.2 million, partly comprised of $76.2 million of interest on funds for universal life policies. For the three months ended June 30, 2014, universal life and BOLI unlocking was largely driven by the impact of reinsurance. The impact of a reinsurance settlement increased benefits and settlement expenses $25.4 million and is almost entirely offset by a decline in ceded premiums.

Amortization of DAC and VOBA

DAC and VOBA amortization was $17.4 million for the three months ended June 30, 2014. For the three months ended June 30, 2014, universal life and BOLI unlocking increased amortization $0.7 million.

Other operating expenses

Other operating expenses were $44.8 million for the three months ended June 30, 2014. Other operating expenses for the insurance companies reflect commissions of $47.9 million, general and administrative expenses of $45.4 million and taxes, licenses, and fees of $7.4 million, partly offset by ceding allowances of $26.6 million and capitalization of $58.7 million. Marketing company expenses were $29.4 million for the period ended June 30, 2014.

Sales

Sales for the segment were $32.8 million for the three months ended June 30, 2014, almost entirely comprised of universal life sales.

For The Six Months Ended June 30, 2014 (Predecessor Company)

Net premiums and policy fees

Net premiums and policy fees were $449.1 million for the six months ended June 30, 2014. This amount is comprised of traditional life net premiums of $228.2 million and universal life policy fees of $220.6 million.

Net investment income

Net investment income in the segment was $270.7 million for the six months ended June 30, 2014. Included in this amount is traditional life net investment income of $32.5 million and universal life investment income of $231.1 million.

Other income

Other income was $63.1 million for the six months ended June 30, 2014, primarily due to revenue in the segment’s non-insurance operations.

Benefits and settlement expenses

Benefits and settlement expenses were $603.7 million for the six months ended June 30, 2014. This amount includes traditional life benefit and settlement expenses of $183.9 million and universal life benefit and settlement expenses of $420.6 million, partly comprised of $152.1 million of interest on funds for universal life policies. For the six months ended June 30, 2014, universal life and BOLI unlocking was largely driven by the impact of reinsurance.

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The impact of a reinsurance settlement increased benefits and settlement expenses $21.2 million and is almost entirely offset by a decline in ceded premiums.

Amortization of DAC and VOBA

DAC and VOBA amortization was $41.4 million for the six months ended June 30, 2014. For the six months ended June 30, 2014, universal life and BOLI unlocking increased amortization $5.3 million.

Other operating expenses

Other operating expenses were $88.0 million for the six months ended June 30, 2014. Other operating expenses for the insurance companies reflect commissions of $87.7 million, general and administrative expenses of $87.6 million and taxes, licenses, and fees of $13.2 million, partly offset by ceding allowances of $63.7 million and capitalization of $97.0 million. Marketing company expenses were $60.3 million for the period ended June 30, 2014.

Sales

Sales for the segment were $61.2 million for the six months ended June 30, 2014, almost entirely comprised of universal life sales.

Reinsurance

Currently, the Life Marketing segment reinsures significant amounts of its life insurance in-force. Pursuant to the underlying reinsurance contracts, reinsurers pay allowances to the segment as a percentage of both first year and renewal premiums. Reinsurance allowances represent the amount the reinsurer is willing to pay for reimbursement of acquisition costs incurred by the direct writer of the business. A portion of reinsurance allowances received is deferred as part of DAC and a portion is recognized immediately as a reduction of other operating expenses. As the non-deferred portion of allowances reduces operating expenses in the period received, these amounts represent a net increase to operating income during that period.

Reinsurance allowances do not affect the methodology used to amortize DAC or the period over which such DAC is amortized. However, they do affect the amounts recognized as DAC amortization. DAC on universal life-type, limited-payment long duration, and investment contracts business is amortized based on the estimated gross profits of the policies in-force. Reinsurance allowances are considered in the determination of estimated gross profits, and therefore, impact DAC amortization on these lines of business. Deferred reinsurance allowances on level term business are recorded as ceded DAC, which is amortized over estimated ceded premiums of the policies in-force. Thus, deferred reinsurance allowances may impact DAC amortization. A more detailed discussion of the components of reinsurance can be found in the Reinsurance section of Note 2, Summary of Significant Accounting Policies to our consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (Predecessor Company).

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Impact of reinsurance

Reinsurance impacted the Life Marketing segment line items as shown in the following table:

Life Marketing Segment

Line Item Impact of Reinsurance

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
REVENUES
Reinsurance ceded	$	(211,296	)	$	(279,679	)	$	(51,142	)	$	(206,056	)	$	(400,075	)
BENEFITS AND EXPENSES
Benefits and settlement expenses	(188,990		)	(250,725		)	(58,501		)	(228,616		)	(427,398		)
Amortization of DAC/VOBA	(1,389		)	(2,183		)	(3,766		)	(9,717		)	(19,189		)
Other operating expenses (1)	(38,066		)	(66,104		)	(11,728		)	(33,351		)	(65,644		)
Total benefits and expenses	(228,445		)	(319,012		)	(73,995		)	(271,684		)	(512,231		)
NET IMPACT OF REINSURANCE	$	17,149		$	39,333		$	22,853		$	65,628		$	112,156
Allowances received	$	(40,214	)	$	(69,576	)	$	(12,413	)	$	(26,560	)	$	(63,709	)
Less: Amount deferred	2,148			3,472			685			(6,791		)	(1,935		)
Allowances recognized
(ceded other operating expenses) (1)	$	(38,066	)	$	(66,104	)	$	(11,728	)	$	(33,351	)	$	(65,644	)

(1) Other operating expenses ceded per the income statement are equal to reinsurance allowances recognized after capitalization.

The table above does not reflect the impact of reinsurance on our net investment income. By ceding business to the assuming companies, we forgo investment income on the reserves ceded. Conversely, the assuming companies will receive investment income on the reserves assumed, which will increase the assuming companies’ profitability on the business that we cede. The net investment income impact to us and the assuming companies has not been quantified. The impact of including foregone investment income would be to substantially reduce the favorable net impact of reinsurance reflected above. We estimate that the impact of foregone investment income would be to reduce the net impact of reinsurance presented in the table above by 100% to 300%. The Life Marketing segment’s reinsurance programs do not materially impact the “other income” line of our income statement.

As shown above, reinsurance had a favorable impact on the Life Marketing segment’s operating income for the periods presented above. The impact of reinsurance is largely due to our quota share coinsurance program in place prior to mid-2005. Under that program, generally 90% of the segment’s traditional new business was ceded to reinsurers. Since mid-2005, a much smaller percentage of overall term business has been ceded due to a change in reinsurance strategy on traditional business. In addition, since 2012, a much smaller percentage of the segment’s new universal life business has been ceded. As a result of that change, the relative impact of reinsurance on the Life Marketing segment’s overall results is expected to decrease over time. While the significance of reinsurance is expected to decline over time, the overall impact of reinsurance for a given period may fluctuate due to variations in mortality and unlocking of balances.

For The Three Months Ended June 30, 2015 (Successor Company)

The ceded premiums were primarily comprised of ceded traditional life premiums of $107.9 million and universal life premiums of $102.5 million.

93

Ceded benefits and settlement expenses were $189.0 million for the three months ended June 30, 2015. This amount is driven by ceded claims. Traditional life ceded benefits activity of $103.4 million was due to ceded death benefits, slightly offset by ceded reserves. Universal life ceded benefits of $85.8 million were largely comprised of $64.3 million in ceded universal life claims during the period.

Ceded amortization of DAC and VOBA activity was $1.4 million for the three months ended June 30, 2015.

Ceded other operating expenses reflect the impact of reinsurance allowances on net income.

For The Period of February 1, 2015 to June 30, 2015 (Successor Company)

The ceded premiums were primarily comprised of ceded traditional life premiums of $113.7 million and universal life premiums of $165.5 million.

Ceded benefits and settlement expenses were $250.7 million for the period of February 1, 2015 to June 30, 2015. This amount is driven by ceded claims, partly offset by change in ceded reserves. Traditional life ceded benefits activity of $105.5 million was due to ceded death benefits, partly offset by ceded reserves. Universal life ceded benefits of $145.6 million were largely comprised of $124.0 million in ceded universal life claims during the period.

Ceded amortization of DAC and VOBA activity was $2.2 million for the period of February 1, 2015 to June 30, 2015.

For The Period of January 1, 2015 to January 31, 2015 (Predecessor Company)

The ceded premiums were primarily comprised of ceded traditional life premiums of $22.6 million and universal life premiums of $27.2 million. Traditional life ceded premiums for the period January 1, 2015 to January 31, 2015 were impacted by runoff and a number of policies with post level activity.

Ceded benefits and settlement expenses were $58.5 million for the period of January 1, 2015 to January 31, 2015.  This amount is driven by ceded claims, partly offset by change in ceded reserves. Traditional life ceded benefits activity of $29.3 million was due to ceded death benefits, partly offset by ceded reserves. Universal life ceded benefits of $30.0 million were mainly comprised of $30.4 million in ceded universal life claims during the period.

Ceded amortization of DAC and VOBA activity was $3.8 million for the period of January 1, 2015 to January 31, 2015.

Ceded other operating expenses reflect the impact of reinsurance allowances on net income.

For The Three Months Ended June 30, 2014 (Predecessor Company)

The ceded premiums for 2014 were primarily comprised of ceded traditional life premiums of $139.0 million and universal life premiums of $66.5 million. Traditional life ceded premiums for the three months ended June 30, 2014 were impacted by runoff and a number of policies with post level activity. Universal life ceded premiums were reduced by $23.5 million due to a reinsurance settlement.

Ceded benefits and settlement expenses were $228.6 million for the three months ended June 30, 2014.  This amount was primarily driven by the impact of ceded claims, with traditional life ceded death benefits of $142.1 million and universal life ceded death benefits of $84.2 million.

Ceded amortization of DAC and VOBA was $9.7 million for the three months ended June 30, 2014.

Ceded other operating expenses reflect the impact of reinsurance allowances on net income.

94

For The Six Months Ended June 30, 2014 (Predecessor Company)

The ceded premiums for 2014 were primarily comprised of ceded traditional life premiums of $238.0 million and universal life premiums of $161.2 million. Traditional life ceded premiums for the six months ended June 30, 2014 were impacted by runoff and a number of policies with post level activity. Universal life ceded premiums were reduced by $23.5 million due to a reinsurance settlement.

Ceded benefits and settlement expenses were $427.4 million for the six months ended June 30, 2014. This amount was primarily driven by the impact of ceded claims, with traditional life ceded death benefits of $269.4 million and universal life ceded death benefits of $165.9 million.

Ceded amortization of DAC and VOBA was $19.2 million for the six months ended June 30, 2014.

Ceded other operating expenses reflect the impact of reinsurance allowances on net income.

95

Acquisitions

Segment Results of Operations

Segment results were as follows:

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
REVENUES
Gross premiums and policy fees	$	280,570		$	472,472		$	88,855		$	305,567		$	601,397
Reinsurance ceded	(96,158		)	(144,718		)	(26,512		)	(102,346		)	(202,715		)
Net premiums and policy fees	184,412			327,754			62,343			203,221			398,682
Net investment income	175,815			289,507			71,088			220,558			436,660
Other income	3,173			5,364			1,240			3,289			7,350
Total operating revenues	363,400			622,625			134,671			427,068			842,692
Realized gains (losses) - investments	(107,997		)	(140,624		)	73,601			63,530			134,645
Realized gains (losses) - derivatives	108,582			140,773			(68,511		)	(52,354		)	(112,145		)
Total revenues	363,985			622,774			139,761			438,244			865,192
BENEFITS AND EXPENSES
Benefits and settlement expenses	300,336			506,183			100,693			316,233			624,597
Amortization of value of business acquired	968			838			4,803			16,341			34,403
Other operating expenses	24,220			41,658			9,041			29,612			57,814
Operating benefits and expenses	325,524			548,679			114,537			362,186			716,814
Amortization related to benefits and settlement expenses	4,859			7,268			1,233			3,531			11,031
Amortization of VOBA related to realized gains (losses) - investments	(18		)	(28		)	230			271			781
Total benefits and expenses	330,365			555,919			116,000			365,988			728,626
INCOME BEFORE INCOME TAX	33,620			66,855			23,761			72,256			136,566
Less: realized gains (losses)	585			149			5,090			11,176			22,500
Less: amortization related to benefits and settlement expenses	(4,859		)	(7,268		)	(1,233		)	(3,531		)	(11,031		)
Less: related amortization of VOBA	18			28			(230		)	(271		)	(781		)
OPERATING INCOME	$	37,876		$	73,946		$	20,134		$	64,882		$	125,878

96

The following table summarizes key data for the Acquisitions segment:

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Average Life Insurance In-Force(1)
Traditional	$	176,915,702		$	178,507,100		$	182,177,575		$	190,056,333		$	191,921,326
Universal life	32,315,549			32,693,540			33,413,557			35,310,786			35,740,030
	$	209,231,251		$	211,200,640		$	215,591,132		$	225,367,119		$	227,661,356
Average Account Values
Universal life	$	4,457,553		$	4,473,467		$	4,486,843		$	4,583,381		$	4,589,960
Fixed annuity(2)	3,653,446			3,674,635			3,712,578			3,793,990			3,811,495
Variable annuity	1,383,149			1,396,888			1,396,587			1,503,129			1,507,345
	$	9,494,148		$	9,544,990		$	9,596,008		$	9,880,500		$	9,908,800
Interest Spread - UL & Fixed Annuities
Net investment income yield(3)	4.30		%	4.32		%	5.73		%	5.71		%	5.67		%
Interest credited to policyholders	4.09			4.04			4.05			3.93			3.94
Interest spread	0.21		%	0.28		%	1.68		%	1.78		%	1.73		%

(1) Amounts are not adjusted for reinsurance ceded.

(2) Includes general account balances held within variable annuity products and is net of coinsurance ceded.

(3) Earned rates exclude portfolios supporting modified coinsurance and crediting rates exclude 100% cessions.

For The Three Months Ended June 30, 2015 (Successor Company)

Operating revenues

Operating revenues for the segment were $363.4 million and included net premiums and policy fees of $184.4 million, net investment income of $175.8 million, and other income of $3.2 million. The segment experienced expected runoff in the current period.

Total benefits and expenses

Total benefits and expenses were $330.4 million, primarily due to operating benefits and expenses of $325.5 million. Operating benefits and expenses included benefits and settlement expenses of $300.3 million, amortization of VOBA of $1.0 million, and other operating expenses of $24.2 million. The net impact of amortization related to benefits and settlement expenses and amortization of VOBA related to realized gains (losses) on investments contributed $4.8 million to total benefits and expenses.

For The Period of February 1, 2015 to June 30, 2015 (Successor Company)

Operating revenues

Operating revenues for the segment were $622.6 million and included net premiums and policy fees of $327.8 million, net investment income of $289.5 million, and other income of $5.4 million. The segment experienced expected runoff in the current period.

97

Total benefits and expenses

Total benefits and expenses were $555.9 million, primarily due to operating benefits and expenses of $548.7 million. Operating benefits and expenses included benefits and settlement expenses of $506.2 million, amortization of VOBA of $0.8 million, and other operating expenses of $41.7 million. The net impact of amortization related to benefits and settlement expenses and amortization of VOBA related to realized gains (losses) on investments contributed $7.2 million to total benefits and expenses.

For The Period of January 1, 2015 to January 31, 2015 (Predecessor Company)

Operating revenues

Operating revenues for the segment were $134.7 million and included net premiums and policy fees of $62.3 million, net investment income of $71.1 million, and other income of $1.2 million. The segment experienced expected runoff in the current period.

Total benefits and expenses

Total benefits and expenses were $116.0 million, primarily due to operating benefits and expenses of $114.5 million. Operating benefits and expenses included benefits and settlement expenses of $100.7 million, amortization of VOBA of $4.8 million, and other operating expenses of $9.0 million. The net impact of amortization related to benefits and settlement expenses and amortization of VOBA related to realized gains (losses) on investments contributed $1.5 million to total benefits and expenses.

For The Three Months Ended June 30, 2014 (Predecessor Company)

Operating revenues

Net premiums and policy fees were $203.2 million for the three months ended June 30, 2014. Net investment income was $220.6 million for the three months ended June 30, 2014. The segment experienced expected runoff.

Total benefits and expenses

Total benefits and expenses were $366.0 million for the three months ended June 30, 2014. The segment experienced expected runoff.

For The Six Months Ended June 30, 2014 (Predecessor Company)

Operating revenues

Net premiums and policy fees were $398.7 million for the six months ended June 30, 2014. Net investment income was $436.7 million for the six months ended June 30, 2014. The segment experienced expected runoff.

Total benefits and expenses

Total benefits and expenses were $728.6 million for the six months ended June 30, 2014. The segment experienced expected runoff.

Reinsurance

The Acquisitions segment currently reinsures portions of both its life and annuity in-force. The cost of reinsurance to the segment is reflected in the chart shown below. A more detailed discussion of the components of reinsurance can be found in the Reinsurance section of Note 2, Summary of Significant Accounting Policies  of our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (Predecessor Company).

98

Impact of reinsurance

Reinsurance impacted the Acquisitions segment line items as shown in the following table:

Acquisitions Segment

Line Item Impact of Reinsurance

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)
REVENUES
Reinsurance ceded	$	(96,158	)	$	(144,718	)	$	(26,512	)	$	(102,346	)	$	(202,715	)
BENEFITS AND EXPENSES
Benefits and settlement expenses	(87,775		)	(122,064		)	(25,832		)	(81,803		)	(171,538		)
Amortization of value of business acquired	(76		)	(85		)	(233		)	(3,180		)	(6,158		)
Other operating expenses	(11,312		)	(19,597		)	(3,647		)	(12,058		)	(22,945		)
Total benefits and expenses	(99,163		)	(141,746		)	(29,712		)	(97,041		)	(200,641		)
NET IMPACT OF REINSURANCE (1)	$	3,005		$	(2,972	)	$	3,200		$	(5,305	)	$	(2,074	)

(1)Assumes no investment income on reinsurance. Foregone investment income would substantially reduce the favorable impact of reinsurance.

The segment’s reinsurance programs do not materially impact the other income line of the income statement. In addition, net investment income generally has no direct impact on reinsurance cost. However, by ceding business to the assuming companies, we forgo investment income on the reserves ceded to the assuming companies. Conversely, the assuming companies will receive investment income on the reserves assumed which will increase the assuming companies’ profitability on business assumed from the Company. For business ceded under modified coinsurance arrangements, the amount of investment income attributable to the assuming company is included as part of the overall change in policy reserves and, as such, is reflected in benefit and settlement expenses. The net investment income impact to us and the assuming companies has not been quantified as it is not fully reflected in our consolidated financial statements.

The net impact of reinsurance activity for the three months ended June 30, 2015 (Successor Company) was primarily due to ceded premiums in relation to ceded benefits and settlement expenses. Ceded benefits and settlement expenses were primarily driven by ceded claims.

The net impact of reinsurance activity for the period of February 1, 2015 to June 30, 2015 (Successor Company) was primarily due to ceded premiums in relation to ceded benefits and settlement expenses. Ceded benefits and settlement expenses were primarily driven by ceded claims.

The net impact of reinsurance activity for the period of January 1, 2015 to January 31, 2015 (Predecessor Company) was primarily due to ceded premiums in relation to ceded benefits and settlement expenses. Ceded benefits and settlement expenses were primarily driven by ceded claims.

The net impact of reinsurance activity for the three and six months ended June 30, 2014 (Predecessor Company) was primarily due to ceded premiums in relation to ceded benefits and settlement expenses. Ceded benefits and settlement expenses were primarily driven by ceded claims.

99

Annuities

Segment Results of Operations

Segment results were as follows:

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
REVENUES
Gross premiums and policy fees	$	38,272		$	63,219		$	12,473		$	37,559		$	73,831
Reinsurance ceded	—			—			—			—			—
Net premiums and policy fees	38,272			63,219			12,473			37,559			73,831
Net investment income	82,854			133,785			37,189			116,831			234,297
Realized gains (losses) - derivatives	(18,932		)	(31,324		)	(6,156		)	(17,461		)	(34,448		)
Other income	41,394			68,523			12,980			35,987			71,417
Total operating revenues	143,588			234,203			56,486			172,916			345,097
Realized gains (losses) - investments	(1,427		)	(2,032		)	(145		)	2,338			2,947
Realized gains (losses) - derivatives, net of economic cost	2,924			16,283			(48,457		)	(19,837		)	(47,970		)
Total revenues	145,085			248,454			7,884			155,417			300,074
BENEFITS AND EXPENSES
Benefits and settlement expenses	63,435			96,354			27,485			76,974			154,833
Amortization of deferred policy acquisition costs and value of business acquired	(3,320		)	(5,724		)	5,911			11,796			26,168
Other operating expenses	34,284			56,199			9,926			28,888			57,195
Operating benefits and expenses	94,399			146,829			43,322			117,658			238,196
Amortization related to benefits and settlement expenses	(737		)	(1,349		)	3,128			(226		)	2,007
Amortization of DAC/VOBA related to realized gains (losses) - investments	2,411			8,061			(13,617		)	(4,840		)	(13,127		)
Total benefits and expenses	96,073			153,541			32,833			112,592			227,076
INCOME (LOSS) BEFORE INCOME TAX	49,012			94,913			(24,949		)	42,825			72,998
Less: realized gains (losses) - investments	(1,427		)	(2,032		)	(145		)	2,338			2,947
Less: realized gains (losses) - derivatives, net of economic cost	2,924			16,283			(48,457		)	(19,837		)	(47,970		)
Less: amortization related to benefits and settlement expenses	737			1,349			(3,128		)	226			(2,007		)
Less: related amortization of DAC/VOBA	(2,411		)	(8,061		)	13,617			4,840			13,127
OPERATING INCOME	$	49,189		$	87,374		$	13,164		$	55,258		$	106,901

100

The following tables summarize key data for the Annuities segment:

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Sales
Fixed annuity	$	111,131		$	153,607		$	28,335		$	213,601		$	449,755
Variable annuity	361,559			545,706			59,115			227,303			407,508
	$	472,690		$	699,313		$	87,450		$	440,904		$	857,263
Average Account Values
Fixed annuity(1)	$	8,285,451		$	8,255,571		$	8,171,438		$	8,213,004		$	8,197,573
Variable annuity	12,711,950			12,658,770			12,365,217			12,314,739			12,174,897
	$	20,997,401		$	20,914,341		$	20,536,655		$	20,527,743		$	20,372,470
Interest Spread - Fixed Annuities(2)
Net investment income yield	3.78		%	3.67		%	5.22		%	5.46		%	5.48		%
Interest credited to policyholders	2.86			2.88			3.17			3.35			3.35
Interest spread	0.92		%	0.79		%	2.05		%	2.11		%	2.13		%

(1)Includes general account balances held within VA products.

(2)Interest spread on average general account values.

101

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Derivatives related to VA contracts:
Interest rate futures - VA	$	(14,183	)	$	(14,231	)	$	1,413		$	6,548		$	10,798
Equity futures - VA	(5,267		)	(37,736		)	9,221			(7,259		)	(9,910		)
Currency futures - VA	(8,709		)	(2,572		)	7,778			(2,887		)	(4,165		)
Variance swaps - VA	—			—			—			(823		)	(2,673		)
Equity options - VA	(3,550		)	(25,324		)	3,047			(20,949		)	(33,290		)
Interest rate swaptions - VA	2,547			(8,781		)	9,268			(4,998		)	(14,401		)
Interest rate swaps - VA	(121,167		)	(175,958		)	122,710			45,169			102,537
Embedded derivative - GMWB(1)	132,657			245,917			(207,018		)	(47,389		)	(129,676		)
Total derivatives related to VA contracts	(17,672		)	(18,685		)	(53,581		)	(32,588		)	(80,780		)
Derivatives related to FIA contracts:
Embedded derivative - FIA	290			(2,293		)	1,769			(8,307		)	(6,574		)
Equity futures - FIA	123			307			(184		)	605			950
Volatility futures - FIA	25			29			—			8			8
Equity options - FIA	1,226			5,601			(2,617		)	2,984			3,978
Total derivatives related to FIA contracts	1,664			3,644			(1,032		)	(4,710		)	(1,638		)
VA GMWB economic cost(2)	18,932			31,324			6,156			17,461			34,448
Realized gains (losses) - derivatives, net of economic cost	$	2,924		$	16,283		$	(48,457	)	$	(19,837	)	$	(47,970	)

(1)Includes impact of nonperformance risk of $5.4 million and $(0.5) million for the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company) and $11.8 million, $(6.9) million, and $(10.0) million for the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the three and six months ended June 30, 2014 (Predecessor Company), respectively.

(2)Economic cost is the long-term expected average cost of providing the product benefit over the life of the policy based on product pricing assumptions. These include assumptions about the economic/market environment, and elective and non-elective policy owner behavior (e.g. lapses, withdrawal timing, mortality, etc.).

	Successor			Predecessor
	Company			Company
	As of			As of
	June 30, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
GMDB - Net amount at risk(1)	$	104,496		$	93,061
GMDB Reserves	31,032			25,960
GMWB and GMAB Reserves	(59,867		)	245,127
Account value subject to GMWB rider	9,764,715			9,738,496
GMWB Benefit Base	10,081,621			9,837,891
GMAB Benefit Base	4,544			4,967
S&P 500® Index	2,063			2,059

(1) Guaranteed benefits in excess of contract holder account balance.

102

For The Three Months Ended June 30, 2015 (Successor Company)

Operating revenues

Segment operating revenues were $143.6 million for the three months ended June 30, 2015. Operating revenue consisted of $82.9 million of net investment income, $38.3 million of policy fees, $41.4 million in other income, and $18.9 million related to GMWB economic cost from the VA line of business.

Benefits and settlement expenses

Benefits and settlement expenses were $63.4 million for the three months ended June 30, 2015. Included in that amount was $3.2 million in unfavorable SPIA mortality results along with an increase of $1.4 million in guaranteed benefit reserves from the VA line of business.

Amortization of DAC and VOBA

DAC and VOBA amortization was $3.3 million favorable for the three months ended June 30, 2015 due to the allocation of negative VOBA to some of the products within the segment. There was $0.3 million of favorable unlocking recorded by the segment during the three months ended June 30, 2015.

Other operating expenses

Other operating expenses were $34.3 million for three months ended June 30, 2015. Operating expenses consisted of $8.6 million in acquisition expenses, $12.4 million in maintenance and overhead expenses, and $13.3 million in commission expenses.

Sales

Total sales were $472.7 million for the three months ended June 30, 2015. Fixed annuity sales were $111.1 million and variable annuity sales were $361.6 million.

For The Period of February 1, 2015 to June 30, 2015 (Successor Company)

Operating revenues

Segment operating revenues were $234.2 million for the period of February 1, 2015 to June 30, 2015. Operating revenue consisted of $113.8 million of net investment income, $63.2 million of policy fees, $68.5 million in other income, and $31.3 million related to GMWB economic cost from the VA line of business.

Benefits and settlement expenses

Benefits and settlement expenses were $96.4 million for the period of February 1, 2015 to June 30, 2015. Included in that amount was $4.8 million in favorable SPIA mortality results, which was partially offset by an increase in guaranteed benefit reserves of $2.4 million from the VA line of business.

Amortization of DAC and VOBA

DAC and VOBA amortization was $5.7 million favorable for the period of February 1, 2015 to June 30, 2015 due to the allocation of negative VOBA to some of the products within the segment. There was $0.3 million of favorable unlocking recorded by the segment during the period of February 1, 2015 to June 30, 2015.

Other operating expenses

Other operating expenses were $56.2 million for the period of February 1, 2015 to June 30, 2015. Operating expenses consisted of $14.1 million in acquisition expenses, $20.2 million in maintenance and overhead expenses, and $21.9 million in commission expenses.

103

Sales

Total sales were $699.3 million for the period of February 1, 2015 to June 30, 2015. Fixed annuity sales were $153.6 million and variable annuity sales were $545.7 million.

For The Period of January 1, 2015 to January 31, 2015 (Predecessor Company)

Operating revenues

Segment operating revenues were $56.5 million for the period of January 1, 2015 to January 31, 2015. Operating revenue consisted of $37.2 million of net investment income, $12.5 million of policy fees, $13.0 million in other income, and $6.2 million related to GMWB economic cost from the VA line of business.

Benefits and settlement expenses

Benefits and settlement expenses were $27.5 million for the period of January 1, 2015 to January 31, 2015. Included in that amount was $2.8 million of unfavorable SPIA mortality results and a $2.6 million increase in guaranteed benefit reserves from the VA line of business.

Amortization of DAC and VOBA

DAC and VOBA amortization was $5.9 million unfavorable for the period of January 1, 2015 to January 31, 2015. The segment recorded unfavorable DAC unlocking of $2.4 million, including $2.2 million of unfavorable unlocking from the VA line of business.

Other operating expenses

Other operating expenses were $9.9 million for the period of January 1, 2015 to January 31, 2015. Operating expenses consisted of $2.8 million in acquisition expense, $2.8 million in maintenance and overhead expenses, and $4.3 million in commission expenses.

Sales

Total sales were $87.5 million for the period of January 1, 2015 to January 31, 2015. Fixed annuity sales were $28.3 million and variable annuity sales were $59.1 million.

For The Three Months Ended June 30, 2014 (Predecessor Company)

Operating revenues

Segment operating revenues were $172.9 million for the three months ended June 30, 2014. Operating revenue consisted of $116.8 million of net investment income, $37.6 million of policy fees, $36.0 million in other income, and $17.5 million related to GMWB economic cost from the VA line of business.

Benefits and settlement expenses

Benefits and settlement expenses were $77.0 million for the three months ended June 30, 2014. Included in that amount was $7.6 million of unfavorable SPIA mortality results.

Amortization of DAC and VOBA

DAC and VOBA amortization was $11.8 million unfavorable for the three months ended June 30, 2014.  The segment recorded favorable unlocking of $3.2 million, including $2.1 million of favorable unlocking from the VA line of business.

104

Other operating expenses

Other operating expenses were $28.9 million for the three months ended June 30, 2014. Operating expenses consisted of $8.0 million in acquisition expense, $8.3 million in maintenance and overhead expenses, and $12.6 million in commission expenses.

Sales

Total sales were $440.9 million for the three months ended June 30, 2014. Fixed annuity sales were $213.6 million and variable annuity sales were $227.3 million.

For The Six Months Ended June 30, 2014 (Predecessor Company)

Operating revenues

Segment operating revenues were $345.1 million for the six months ended June 30, 2014. Operating revenue consisted of $234.3 million of net investment income, $73.8 million of policy fees, $71.4 million in other income, and $34.4 million related to GMWB economic cost from the VA line of business.

Benefits and settlement expenses

Benefits and settlement expenses were $154.8 million for the six months ended June 30, 2014. Included in that amount was $15.0 million of unfavorable SPIA mortality results.

Amortization of DAC and VOBA

DAC and VOBA amortization was $26.2 million unfavorable for the six months ended June 30, 2014.  The segment recorded favorable unlocking of $4.5 million, including $2.5 million of favorable unlocking from the VA line of business.

Other operating expenses

Other operating expenses were $57.2 million for the six months ended June 30, 2014. Operating expenses consisted of $16.4 million in acquisition expense, $16.2 million in maintenance and overhead expenses, and $24.6 million in commission expenses.

Sales

Total sales were $857.3 million for the six months ended June 30, 2014. Fixed annuity sales were $449.8 million and variable annuity sales were $407.5 million.

105

Stable Value Products

Segment Results of Operations

Segment results were as follows:

	Successor				Predecessor
	Company				Company
	For The Three		February 1, 2015		January 1, 2015		For The Three			For The Six
	Months Ended		to		to		Months Ended			Months Ended
	June 30, 2015		June 30, 2015		January 31, 2015		June 30, 2014			June 30, 2014
	(Dollars In Thousands)				(Dollars In Thousands)
REVENUES
Net investment income	$	15,371	$	25,744	$	6,888	$	27,178		$	54,956
Other income	133		133		—		1			1
Total operating revenues	15,504		25,877		6,888		27,179			54,957
Realized gains (losses)	1,152		1,121		1,293		(70		)	(29		)
Total revenues	16,656		26,998		8,181		27,109			54,928
BENEFITS AND EXPENSES
Benefits and settlement expenses	5,687		9,606		2,255		9,525			19,333
Amortization of deferred policy acquisition costs and value of business acquired	—		—		25		99			199
Other operating expenses	468		807		79		268			741
Total benefits and expenses	6,155		10,413		2,359		9,892			20,273
INCOME BEFORE INCOME TAX	10,501		16,585		5,822		17,217			34,655
Less: realized gains (losses)	1,152		1,121		1,293		(70		)	(29		)
OPERATING INCOME	$	9,349	$	15,464	$	4,529	$	17,287		$	34,684

106

The following table summarizes key data for the Stable Value Products segment:

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Sales
GIC	$	55,200		$	105,900		$	—		$	—		$	25,850
GFA - Direct Institutional	50,000			150,000			—			50,000			50,000
	$	105,200		$	255,900		$	—		$	50,000		$	75,850
Average Account Values	$	1,926,711		$	1,901,499		$	1,932,722		$	2,498,395		$	2,538,995
Ending Account Values	$	1,861,280		$	1,861,280		$	1,911,751		$	2,435,995		$	2,435,995
Operating Spread
Net investment income yield	3.23		%	3.30		%	4.28		%	4.35		%	4.33		%
Other income yield	0.02			0.01			—			—			—
Interest credited	1.19			1.23			1.40			1.52			1.52
Operating expenses	0.10			0.11			0.07			0.06			0.08
Operating spread	1.96		%	1.97		%	2.81		%	2.77		%	2.73		%
Adjusted operating spread(1)	1.83		%	1.71		%	2.76		%	2.69		%	2.66		%

(1)Excludes participating mortgage loan income and other income.

For The Three Months Ended June 30, 2015 (Successor Company)

Segment operating income

Operating income of $9.3 million was primarily due to activity in average account values, operating spread, and participating mortgage income. Participating mortgage income was $0.5 million and the adjusted operating spread, which excludes participating income, was 183 basis points.

For The Period of February 1, 2015 to June 30, 2015 (Successor Company)

Segment operating income

Operating income of $15.5 million was primarily due to activity in average account values, operating spread, and participating mortgage income. Participating mortgage income was $1.7 million and the adjusted operating spread, which excludes participating income, was 171 basis points.

For The Period of January 1, 2015 to January 31, 2015 (Predecessor Company)

Segment operating income

Operating income of $4.5 million was primarily due to activity in average account values, operating spread, and participating mortgage income. Participating mortgage income was $0.1 million and the adjusted operating spread, which excludes participating income, was 276 basis points.

107

For The Three Months Ended June 30, 2014 (Predecessor Company)

Segment operating income

Operating income of $17.3 million was primarily due to activity in average account values, operating spread, and participating mortgage income. Participating mortgage income was $0.5 million and the adjusted operating spread, which excludes participating income, was 269 basis points.

For The Six Months Ended June 30, 2014 (Predecessor Company)

Segment operating income

Operating income of $34.7 million was primarily due to activity in average account values, operating spread, and participating mortgage income. Participating mortgage income was $1.0 million and the adjusted operating spread, which excludes participating income, was 266 basis points.

108

Asset Protection

Segment Results of Operations

Segment results were as follows:

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 30, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
REVENUES
Gross premiums and policy fees	$	69,759		$	115,576		$	23,127		$	67,438		$	134,712
Reinsurance ceded	(37,773		)	(62,231		)	(12,302		)	(34,561		)	(67,885		)
Net premiums and policy fees	31,986			53,345			10,825			32,877			66,827
Net investment income	4,644			7,656			1,878			5,725			11,454
Other income	33,050			52,706			9,250			32,268			58,972
Total operating revenues	69,680			113,707			21,953			70,870			137,253
BENEFITS AND EXPENSES
Benefits and settlement expenses	24,919			40,710			7,592			24,448			49,068
Amortization of deferred policy acquisition costs and value of business acquired	6,599			11,202			1,820			7,004			13,649
Other operating expenses	32,265			51,851			10,121			30,884			59,633
Total benefits and expenses	63,783			103,763			19,533			62,336			122,350
INCOME BEFORE INCOME TAX	5,897			9,944			2,420			8,534			14,903
OPERATING INCOME	$	5,897		$	9,944		$	2,420		$	8,534		$	14,903

The following table summarizes key data for the Asset Protection segment:

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Sales
Credit insurance	$	7,327		$	11,209		$	2,088		$	8,216		$	15,058
Service contracts	110,052			171,968			28,835			102,335			184,247
GAP	23,716			38,948			6,318			19,011			35,758
	$	141,095		$	222,125		$	37,241		$	129,562		$	235,063
Loss Ratios(1)
Credit insurance	30.8		%	34.6		%	27.9		%	16.1		%	28.6		%
Service contracts	85.4			83.3			82.4			90.5			86.9
GAP	79.8			76.7			56.6			57.9			58.1

(1)Incurred claims as a percentage of earned premiums

109

For The Three Months Ended June 30, 2015 (Successor Company)

Net premiums and policy fees

Net premiums and policy fees were $32.0 million which consisted of service contract premiums of $20.5 million, GAP premiums of $8.0 million, and credit insurance premiums of $3.5 million.

Other income

Other income activity consisted of $28.0 million from the service contract line and $5.0 million from the GAP product line.

Benefits and settlement expenses

Benefits and settlement expenses activity was $17.5 million in service contract claims, $6.3 million in GAP claims and $1.1 million in credit insurance claims.

Amortization of DAC and VOBA and Other operating expenses

Amortization of DAC and VOBA consisted of $3.7 million in the credit insurance line, $2.8 million in the GAP line, and $0.1 million in the service contract line, primarily resulting from amortization of VOBA activity. Other operating expenses were $32.3 million including activity in all product lines.

Sales

Total segment sales consisted of $110.1 million in the service contract line, $23.7 million in the GAP product line, and credit insurance sales of $7.3 million.

For The Period of February 1, 2015 to June 30, 2015 (Successor Company)

Net premiums and policy fees

Net premiums and policy fees were $53.3 million which consisted of service contract premiums of $34.3 million, GAP premiums of $13.1 million, and credit insurance premiums of $5.9 million.

Other income

Other income activity consisted of $44.6 million from the service contract line and $8.1 million from the GAP product line.

Benefits and settlement expenses

Benefits and settlement expenses activity was $28.6 million in service contract claims, $10.1 million in GAP claims and $2.0 million in credit insurance claims.

Amortization of DAC and VOBA and Other operating expenses

Amortization of DAC and VOBA consisted of $6.2 million in the credit insurance line, $4.8 million in the GAP line, and $0.2 million in the service contract line, primarily resulting from amortization of VOBA activity. Other operating expenses were $51.9 million including activity in all product lines.

Sales

Total segment sales consisted of $172.0 million in the service contract line, $38.9 million in the GAP product line, and credit insurance sales of $11.2 million.

110

For The Period of January 1, 2015 to January 31, 2015 (Predecessor Company)

Net premiums and policy fees

Net premiums and policy fees consisted of service contract premiums of $7.0 million, GAP premiums of $2.6 million, and $1.2 million of credit insurance premiums.

Other income

Other income consisted of $7.9 million from the service contract line and $1.4 million from the GAP product line.

Benefits and settlement expenses

Benefits and settlement expenses was primarily due to service contract claims of $5.8 million, GAP claims of $1.5 million, and credit insurance claims of $0.3 million.

Amortization of DAC and VOBA and Other operating expenses

Amortization of DAC and VOBA consisted of $1.1 million in the credit insurance line, $0.4 million in the GAP line, and $0.3 million in the service contract line. Other operating expenses were $10.1 million including activity in all product lines.

Sales

Total segment sales consisted of $28.8 million in the service contract line, $6.3 million in the GAP product line and credit insurance sales of $2.1 million.

For The Three Months Ended June 30, 2014 (Predecessor Company)

Net premiums and policy fees

Net premiums and policy fees consisted of service contract premiums of $21.4 million, GAP premiums of $7.8 million, and $3.7 million of credit insurance premiums.

Other income

Other income consisted of $28.2 million from the service contract line and $4.0 million from the GAP product line.

Benefits and settlement expenses

Benefits and settlement expenses was primarily due to service contract claims of $19.4 million, GAP claims of $4.5 million, and credit insurance claims of $0.6 million.

Amortization of DAC and VOBA and Other operating expenses

Amortization of DAC and VOBA consisted of $3.4 million in the credit insurance line, $1.8 million in the GAP line, and $1.8 million in the service contract line. Other operating expenses were $30.9 million including activity in all product lines.

Sales

Total segment sales consisted of $102.3 million in the service contract line, $19.0 million in the GAP product line and credit insurance sales of $8.2 million.

111

For The Six Months Ended June 30, 2014 (Predecessor Company)

Net premiums and policy fees

Net premiums and policy fees consisted of service contract premiums of $43.5 million, GAP premiums of $15.6 million, and $7.7 million of credit insurance premiums.

Other income

Other income consisted of $51.3 million from the service contract line, $7.6 million from the GAP product line, and $0.1 million from the credit insurance line.

Benefits and settlement expenses

Benefits and settlement expenses was primarily due to service contract claims of $37.8 million, GAP claims of $9.1 million, and credit insurance claims of $2.2 million.

Amortization of DAC and VOBA and Other operating expenses

Amortization of DAC and VOBA consisted of $6.9 million in the credit insurance line, $3.3 million in the GAP line, and $3.5 million in the service contract line. Other operating expenses were $59.6 million including activity in all product lines.

Sales

Total segment sales consisted of $184.2 million in the service contract line, $35.8 million in the GAP product line and credit insurance sales of $15.1 million.

Reinsurance

The majority of the Asset Protection segment’s reinsurance activity relates to the cession of single premium credit life and credit accident and health insurance, vehicle service contracts, and guaranteed asset protection insurance to producer affiliated reinsurance companies (“PARCs”). These arrangements are coinsurance contracts ceding the business on a first dollar quota share basis at 100% to limit our exposure and allow the PARCs to share in the underwriting income of the product. Reinsurance contracts do not relieve us from our obligations to our policyholders. A more detailed discussion of the components of reinsurance can be found in the Reinsurance section of Note 2, Summary of Significant Accounting Policies to our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (Predecessor Company).

112

Reinsurance impacted the Asset Protection segment line items as shown in the following table:

Asset Protection Segment

Line Item Impact of Reinsurance

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
REVENUES
Reinsurance ceded	$	(37,773	)	$	(62,231	)	$	(12,302	)	$	(34,561	)	$	(67,885	)
BENEFITS AND EXPENSES
Benefits and settlement expenses	(16,655		)	(26,936		)	(4,659		)	(16,331		)	(30,760		)
Amortization of deferred policy acquisition costs and value of business acquired	(84		)	(92		)	(520		)	(1,259		)	(3,038		)
Other operating expenses	(1,145		)	(1,885		)	(531		)	(2,097		)	(3,672		)
Total benefits and expenses	(17,884		)	(28,913		)	(5,710		)	(19,687		)	(37,470		)
NET IMPACT OF REINSURANCE (1)	$	(19,889	)	$	(33,318	)	$	(6,592	)	$	(14,874	)	$	(30,415	)

(1)Assumes no investment income on reinsurance. Foregone investment income would substantially change the impact of reinsurance.

For The Three Months Ended June 30, 2015 (Successor Company)

Reinsurance premiums ceded of $37.8 million consisted of ceded premiums in the service contract line of $29.2 million, ceded premiums in the GAP product line of $4.3 million, and ceded premiums in the credit insurance line of $4.3 million.

Benefits and settlement expenses ceded consisted of $13.9 million in service contract ceded claims, $2.0 million in GAP ceded claims, and $0.7 million in credit insurance ceded claims.

Other operating expenses ceded of $1.1 million was mainly due to ceded activity in the credit insurance product line.

Net investment income has no direct impact on reinsurance cost. However, by ceding business to the assuming companies, we forgo investment income on the reserves ceded. Conversely, the assuming companies will receive investment income on the reserves assumed which generally will increase the assuming companies’ profitability on business we cede. The net investment income impact to us and the assuming companies has not been quantified as it is not reflected in our consolidated condensed financial statements.

For The Period of February 1, 2015 to June 30, 2015 (Successor Company)

Reinsurance premiums ceded of $62.2 million consisted of ceded premiums in the service contract line of $47.9 million, ceded premiums in the GAP product line of $7.1 million, and ceded premiums in the credit insurance line of $7.2 million.

Benefits and settlement expenses ceded consisted of $22.2 million in service contract ceded claims, $3.3 million in GAP ceded claims, and $1.4 million in credit insurance ceded claims.

Other operating expenses ceded of $1.9 million was mainly due to ceded activity in the credit insurance and GAP product lines.

113

Net investment income has no direct impact on reinsurance cost. However, by ceding business to the assuming companies, we forgo investment income on the reserves ceded. Conversely, the assuming companies will receive investment income on the reserves assumed which generally will increase the assuming companies’ profitability on business we cede. The net investment income impact to us and the assuming companies has not been quantified as it is not reflected in our consolidated condensed financial statements.

For The Period of January 1, 2015 to January 31, 2015 (Predecessor Company)

Reinsurance premiums ceded of $12.3 million consisted of ceded premiums in the service contract line of $9.4 million, ceded premiums in the GAP product line of $1.4 million and ceded premiums in the credit insurance line of $1.5 million.

Benefits and settlement expenses ceded consisted of $4.0 million in service contract ceded claims, $0.4 million in GAP ceded claims, and $0.3 million in credit insurance ceded claims.

Amortization of DAC and VOBA ceded consisted of $0.3 million in the service contract line and $0.2 million in the credit insurance line. Other operating expenses ceded of $0.5 million was mainly due to ceded activity in the credit insurance product line.

Net investment income has no direct impact on reinsurance cost. However, by ceding business to the assuming companies, we forgo investment income on the reserves ceded. Conversely, the assuming companies will receive investment income on the reserves assumed which generally will increase the assuming companies’ profitability on business we cede. The net investment income impact to us and the assuming companies has not been quantified as it is not reflected in our consolidated condensed financial statements.

For The Three Months Ended June 30, 2014 (Predecessor Company)

Reinsurance premiums ceded of $34.6 million consisted of ceded premiums in the service contract line of $25.9 million, ceded premiums in the GAP product line of $3.9 million and ceded premiums in the credit insurance line of $4.8 million.

Benefits and settlement expenses ceded consisted of $13.9 million in service contract ceded claims, $1.7 million in GAP ceded claims, and $0.7 million in credit insurance ceded claims.

Amortization of DAC and VOBA ceded of $1.3 million was primarily the result of ceded activity in the service contract and credit product lines. Other operating expenses ceded of $2.1 million was mainly due to ceded activity in the credit and GAP product lines.

Net investment income has no direct impact on reinsurance cost. However, by ceding business to the assuming companies, we forgo investment income on the reserves ceded. Conversely, the assuming companies will receive investment income on the reserves assumed which generally will increase the assuming companies’ profitability on business we cede. The net investment income impact to us and the assuming companies has not been quantified as it is not reflected in our consolidated condensed financial statements.

For The Six Months Ended June 30, 2014 (Predecessor Company)

Reinsurance premiums ceded of $67.9 million consisted of ceded premiums in the service contract line of $50.9 million, ceded premiums in the GAP product line of $7.5 million and ceded premiums in the credit insurance line of $9.5 million.

Benefits and settlement expenses ceded consisted of $26.2 million in service contract ceded claims, $2.9 million in GAP ceded claims, and $1.7 million in credit insurance ceded claims.

Amortization of DAC and VOBA ceded consisted of $1.7 million in the service contract line, $1.1 million in the credit insurance line and $0.2 million in the GAP product line. Other operating expenses ceded of $3.7 million was mainly due to ceded activity in the credit and GAP product lines.

114

Net investment income has no direct impact on reinsurance cost. However, by ceding business to the assuming companies, we forgo investment income on the reserves ceded. Conversely, the assuming companies will receive investment income on the reserves assumed which generally will increase the assuming companies’ profitability on business we cede. The net investment income impact to us and the assuming companies has not been quantified as it is not reflected in our consolidated condensed financial statements.

115

Corporate and Other

Segment Results of Operations

Segment results were as follows:

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
REVENUES
Gross premiums and policy fees	$	3,770		$	6,434		$	1,343		$	4,145		$	8,554
Reinsurance ceded	(17		)	(17		)	—			(5		)	(6		)
Net premiums and policy fees	3,753			6,417			1,343			4,140			8,548
Net investment income	37,051			69,660			10,677			43,755			80,880
Other income	352			558			141			4,797			5,128
Total operating revenues	41,156			76,635			12,161			52,692			94,556
Realized gains (losses) - investments	2,593			663			4,919			3,803			2,402
Realized gains (losses) - derivatives	484			559			455			176			(302		)
Total revenues	44,233			77,857			17,535			56,671			96,656
BENEFITS AND EXPENSES
Benefits and settlement expenses	3,378			6,265			1,722			5,764			10,089
Amortization of deferred policy acquisition costs and value of business acquired	16			26			87			124			243
Other operating expenses	47,643			78,340			20,496			59,359			111,634
Total benefits and expenses	51,037			84,631			22,305			65,247			121,966
INCOME (LOSS) BEFORE INCOME TAX	(6,804		)	(6,774		)	(4,770		)	(8,576		)	(25,310		)
Less: realized gains (losses) - investments	2,593			663			4,919			3,803			2,402
Less: realized gains (losses) - derivatives	484			559			455			176			(302		)
OPERATING INCOME (LOSS)	$	(9,881	)	$	(7,996	)	$	(10,144	)	$	(12,555	)	$	(27,410	)

For The Three Months Ended June 30, 2015 (Successor Company)

Operating revenues

Operating revenues of $41.2 million were primarily due to $37.1 million of investment income which represents income on assets supporting our equity capital.

Total benefits and expenses

Total benefits and expenses of $51.0 million were primarily due to $47.6 million of other operating expenses which included corporate overhead expenses and $22.8 million of interest expense.

For The Period of February 1, 2015 to June 30, 2015 (Successor Company)

Operating revenues

Operating revenues of $76.6 million were primarily due to $69.7 million of investment income which represents income on assets supporting our equity capital.

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Total benefits and expenses

Total benefits and expenses of $84.6 million were primarily due to $78.3 million of other operating expenses which included corporate overhead expenses and $36.4 million of interest expense.

For The Period of January 1, 2015 to January 31, 2015 (Predecessor Company)

Operating revenues

Operating revenues of $12.2 million were primarily due to $10.7 million of investment income which represents income on assets supporting our equity capital.

Total benefits and expenses

Total benefits and expenses of $22.3 million were primarily due to $20.5 million of other operating expenses which included $11.1 million of interest expense, corporate overhead expenses, and $2.8 million of charitable contributions.

For The Three Months Ended June 30, 2014 (Predecessor Company)

Operating revenues

Operating revenues of $52.7 million were primarily due to $43.8 million of investment which represents income on assets supporting our equity capital.

Total benefits and expenses

Total benefits and expenses of $65.2 million were primarily due to $59.4 million of other operating expenses which included corporate overhead expenses and $36.2 million of interest expense.

For The Six Months Ended June 30, 2014 (Predecessor Company)

Operating revenues

Operating revenues of $94.6 million were primarily due to $80.9 million of investment income which represents income on assets supporting our equity capital.

Total benefits and expenses

Total benefits and expenses of $122.0 million were primarily due to $111.6 million of other operating expenses which included corporate overhead expenses and $72.1 million of interest expense.

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CONSOLIDATED INVESTMENTS

As of June 30, 2015 (Successor Company), our investment portfolio was approximately $45.4 billion. The types of assets in which we may invest are influenced by various state insurance laws which prescribe qualified investment assets. Within the parameters of these laws, we invest in assets giving consideration to such factors as liquidity and capital needs, investment quality, investment return, matching of assets and liabilities, and the overall composition of the investment portfolio by asset type and credit exposure.

The following table presents the reported values of our invested assets:

	Successor				Predecessor
	Company				Company
	As of				As of
	June 30, 2015				December 31, 2014
	(Dollars In Thousands)				(Dollars In Thousands)
Publicly issued bonds (amortized cost: 2015 Successor - $29,680,575; 2014 Predecessor - $26,374,714)	$	27,888,001	61.5	%	$	28,850,812	63.1	%
Privately issued bonds (amortized cost: 2015 Successor - $8,703,649; 2014 Predecessor - $7,798,528)	8,370,699		18.5		8,360,177		18.3
Preferred stock (amortized cost: 2015 Successor - $71,937)	69,243		0.2		—		—
Fixed maturities	36,327,943		80.2		37,210,989		81.4
Equity securities (cost: 2015 Successor - $734,053; 2014 Predecessor - $778,744)	722,457		1.6		803,230		1.8
Mortgage loans	5,677,667		12.5		5,133,780		11.2
Investment real estate	7,404		—		5,918		—
Policy loans	1,719,864		3.8		1,758,237		3.8
Other long-term investments	700,983		1.5		514,639		1.1
Short-term investments	204,667		0.4		250,645		0.7
Total investments	$	45,360,985	100.0	%	$	45,677,438	100.0	%

Included in the preceding table are $2.7 billion and $2.8 billion of fixed maturities and $43.8 million and $95.1 million of short-term investments classified as trading securities as of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), respectively. The trading portfolio includes invested assets of $2.7 billion and $2.8 billion as of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), respectively, held pursuant to modified coinsurance (“Modco”) arrangements under which the economic risks and benefits of the investments are passed to third party reinsurers. Also included above are $565.3 million and $435.0 million of securities classified as held-to-maturity as of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), respectively. The preferred stock shown above as of June 30, 2015 (Successor Company) is included in the equity securities total as of December 31, 2014 (Predecessor Company).

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Fixed Maturity Investments

As of June 30, 2015 (Successor Company), our fixed maturity investment holdings were approximately $36.3 billion. The approximate percentage distribution of our fixed maturity investments by quality rating is as follows:

	Successor		Predecessor
	Company		Company
	As of		As of
Rating	June 30, 2015		December 31, 2014
AAA	13.6	%	12.3	%
AA	7.5		7.3
A	31.5		33.1
BBB	40.7		40.9
Below investment grade	5.2		5.2
Not rated	1.5		1.2
	100.0	%	100.0	%

We use various Nationally Recognized Statistical Rating Organizations’ (“NRSRO”) ratings when classifying securities by quality ratings. When the various NRSRO ratings are not consistent for a security, we use the second-highest convention in assigning the rating. When there are no such published ratings, we assign a rating based on the statutory accounting rating system if such ratings are available.

We do not have material exposure to financial guarantee insurance companies with respect to our investment portfolio.

Changes in fair value for our available-for-sale portfolio, net of tax and the related impact on certain insurance assets and liabilities are recorded directly to shareowner’s equity. Declines in fair value that are other-than-temporary are recorded as realized losses in the consolidated condensed statements of income, net of any applicable non-credit component of the loss, which is recorded as an adjustment to other comprehensive income (loss).

The distribution of our fixed maturity investments by type is as follows:

	Successor		Predecessor
	Company		Company
	As of		As of
Type	June 30, 2015		December 31, 2014
	(Dollars In Millions)		(Dollars In Millions)
Corporate securities	$	27,587.8	$	28,857.6
Residential mortgage-backed securities	1,875.0		1,706.4
Commercial mortgage-backed securities	1,349.5		1,328.4
Other asset-backed securities	1,068.9		1,114.0
U.S. government-related securities	1,842.8		1,679.3
Other government-related securities	76.9		77.2
States, municipals, and political subdivisions	1,892.5		2,013.1
Preferred stock	69.2		—
Other	565.3		435.0
Total fixed income portfolio	$	36,327.9	$	37,211.0

The preferred stock shown above as of June 30, 2015 (Successor Company) is included in the equity securities total as of December 31, 2014 (Predecessor Company).

Within our fixed maturity investments, we maintain portfolios classified as “available-for-sale”, “trading”, and “held-to-maturity”. We purchase our available-for-sale investments with the intent to hold to maturity by purchasing investments that match future cash flow needs. However, we may sell any of our available-for-sale and trading investments to maintain proper matching of assets and liabilities. Accordingly, we classified $33.0 billion, or 90.9%, of

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our fixed maturities as “available-for-sale” as of June 30, 2015 (Successor Company). These securities are carried at fair value on our consolidated condensed balance sheets.

Fixed maturities with respect to which we have both the positive intent and ability to hold to maturity are classified as “held-to-maturity”. We classified $565.3 million, or 1.5%, of our fixed maturities as “held-to-maturity” as of June 30, 2015 (Successor Company). These securities are carried at amortized cost on our consolidated condensed balance sheets.

Trading securities are carried at fair value and changes in fair value are recorded on the income statement as they occur. Our trading portfolio accounted for $2.7 billion, or 7.6%, of our fixed maturities and $43.8 million of short-term investments as of June 30, 2015 (Successor Company). Changes in fair value on the Modco trading portfolio, including gains and losses from sales, are passed to the reinsurers through the contractual terms of the reinsurance arrangements. Partially offsetting these amounts are corresponding changes in the fair value of the embedded derivative associated with the underlying reinsurance arrangement. The total Modco trading portfolio fixed maturities by rating is as follows:

	Successor		Predecessor
	Company		Company
	As of		As of
Rating	June 30, 2015		December 31, 2014
	(Dollars In Thousands)		(Dollars In Thousands)
AAA	$	514,265	$	478,632
AA	279,082		290,255
A	862,821		910,669
BBB	781,770		824,143
Below investment grade	308,794		312,594
Total Modco trading fixed maturities	$	2,746,732	$	2,816,293

A portion of our bond portfolio is invested in residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”), and other asset-backed securities (collectively referred to as asset-backed securities or “ABS”). ABS are securities that are backed by a pool of assets. These holdings as of June 30, 2015 (Successor Company), were approximately $4.3 billion. Mortgage-backed securities (“MBS”) are constructed from pools of mortgages and may have cash flow volatility as a result of changes in the rate at which prepayments of principal occur with respect to the underlying loans. Excluding limitations on access to lending and other extraordinary economic conditions, prepayments of principal on the underlying loans can be expected to accelerate with decreases in market interest rates and diminish with increases in interest rates.

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Residential mortgage-backed securities - As of June 30, 2015 (Successor Company), our RMBS portfolio was approximately $1.9 billion. As of December 31, 2014 (Predecessor Company), our RMBS portfolio was approximately $1.7 billion. Sequential securities receive payments in order until each class is paid off. Planned amortization class securities (“PACs”) pay down according to a schedule. Pass through securities receive principal as principal of the underlying mortgages is received.

The tables below include a breakdown of these holdings by type and rating as of June 30, 2015 (Successor Company).

		Percentage of
		Residential
		Mortgage- Backed
Type		Securities
Sequential		34.7	%
PAC		32.8
Pass Through		8.6
Other		23.9
		100.0	%
	Percentage of
	Residential
	Mortgage-Backed
Rating	Securities
AAA	72.3		%
AA	0.1
A	0.2
BBB	0.2
Below investment grade	27.2
	100.0		%

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Alt-A Collateralized Holdings

As of June 30, 2015 (Successor Company), we held securities with a fair value of $333.5 million, or 0.7% of invested assets, supported by collateral classified as Alt-A. As of December 31, 2014 (Predecessor Company), we held securities with a fair value of $351.6 million supported by collateral classified as Alt-A. We included in this classification certain whole loan securities where such securities had underlying mortgages with a high level of limited loan documentation. As of June 30, 2015 (Successor Company), these securities had a fair value of $124.4 million and an unrealized gain of $0.3 million.

The following table includes the percentage of our collateral classified as Alt-A, grouped by rating category, as of June 30, 2015 (Successor Company):

	Percentage of
	Alt-A
Rating	Securities
A	—	%
BBB	0.3
Below investment grade	99.7
	100.0	%

The following tables categorize the estimated fair value and unrealized gain/(loss) of our mortgage-backed securities collateralized by Alt-A mortgage loans by rating as of June 30, 2015 (Successor Company):

Alt-A Collateralized Holdings

	Estimated Fair Value of Security by Year of Security Origination
	2011 and
Rating	Prior			2012		2013		2014		2015		Total
	(Dollars In Millions)
A	$	—		$	—	$	—	$	—	$	—	$	—
BBB	1.1			—		—		—		—		1.1
Below investment grade	332.4			—		—		—		—		332.4
Total mortgage-backed securities collateralized by Alt-A mortgage loans	$	333.5		$	—	$	—	$	—	$	—	$	333.5
	Estimated Unrealized Gain (Loss) of Security by Year of Security Origination
	2011 and
Rating	Prior			2012		2013		2014		2015		Total
	(Dollars In Millions)
A	$	—		$	—	$	—	$	—	$	—	$	—
BBB	—			—		—		—		—		—
Below investment grade	(0.1		)	—		—		—		—		(0.1		)
Total mortgage-backed securities collateralized by Alt-A mortgage loans	$	(0.1	)	$	—	$	—	$	—	$	—	$	(0.1	)

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Sub-prime Collateralized Holdings

As of June 30, 2015 (Successor Company), we held securities with a total fair value of $1.7 million that were supported by collateral classified as sub-prime. As of December 31, 2014 (Predecessor Company), we held securities with a fair value of $1.7 million that were supported by collateral classified as sub-prime.

Prime Collateralized Holdings

As of June 30, 2015 (Successor Company), we had RMBS collateralized by prime mortgage loans (including agency mortgages) with a total fair value of $1.5 billion, or 3.4%, of total invested assets. As of December 31, 2014 (Predecessor Company), we held securities with a fair value of $1.4 billion of RMBS collateralized by prime mortgage loans (including agency mortgages).

The following table includes the percentage of our collateral classified as prime, grouped by rating category, as of June 30, 2015 (Successor Company):

	Percentage of
	Prime
Rating	Securities
AAA	88.1	%
AA	0.1
A	0.2
BBB	0.2
Below investment grade	11.4
	100.0	%

The following tables categorize the estimated fair value and unrealized gain/(loss) of our mortgage-backed securities collateralized by prime mortgage loans (including agency mortgages) by rating as of June 30, 2015 (Successor Company):

Prime Collateralized Holdings

	Estimated Fair Value of Security by Year of Security Origination
	2011 and
Rating	Prior			2012			2013			2014			2015			Total
	(Dollars In Millions)
AAA	$	772.3		$	26.4		$	149.2		$	157.0		$	251.5		$	1,356.4
AA	—			—			—			1.8			—			1.8
A	3.8			—			—			—			—			3.8
BBB	3.4			—			—			—			—			3.4
Below investment grade	174.4			—			—			—			—			174.4
Total mortgage-backed securities collateralized by prime mortgage loans	$	953.9		$	26.4		$	149.2		$	158.8		$	251.5		$	1,539.8
	Estimated Unrealized Gain (Loss) of Security by Year of Security Origination
	2011 and
Rating	Prior			2012			2013			2014			2015			Total
	(Dollars In Millions)
AAA	$	(2.8	)	$	(1.2	)	$	(3.5	)	$	(3.6	)	$	(7.9	)	$	(19.0	)
AA	—			—			—			—			—			—
A	—			—			—			—			—			—
BBB	—			—			—			—			—			—
Below investment grade	0.8			—			—			—			—			0.8
Total mortgage-backed securities collateralized by prime mortgage loans	$	(2.0	)	$	(1.2	)	$	(3.5	)	$	(3.6	)	$	(7.9	)	$	(18.2	)

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Commercial mortgage-backed securities - Our CMBS portfolio consists of commercial mortgage-backed securities issued in securitization transactions. As of June 30, 2015 (Successor Company), the CMBS holdings were approximately $1.3 billion. As of December 31, 2014 (Predecessor Company), the CMBS holdings were approximately $1.3 billion.

The following table includes the percentages of our CMBS holdings, grouped by rating category, as of June 30, 2015 (Successor Company):

	Percentage of
	Commercial
	Mortgage-Backed
Rating	Securities
AAA	68.8	%
AA	16.0
A	13.6
BBB	1.6
	100.0	%

The following tables categorize the estimated fair value and unrealized gain/(loss) of our CMBS as of June 30, 2015 (Successor Company):

Commercial Mortgage-Backed Securities

	Estimated Fair Value of Security by Year of Security Origination
	2011 and
Rating	Prior			2012			2013			2014			2015			Total
	(Dollars In Millions)
AAA	$	316.5		$	316.3		$	149.6		$	142.8		$	3.0		$	928.2
AA	68.9			43.4			30.0			59.1			14.5			215.9
A	115.0			14.1			20.0			—			34.0			183.1
BBB	22.3			—			—			—			—			22.3
Total commercial mortgage- backed securities	$	522.7		$	373.8		$	199.6		$	201.9		$	51.5		$	1,349.5
	Estimated Unrealized Gain (Loss) of Security by Year of Security Origination
	2011 and
Rating	Prior			2012			2013			2014			2015			Total
	(Dollars In Millions)
AAA	$	(6.0	)	$	(8.2	)	$	(4.9	)	$	(7.3	)	$	(0.1	)	$	(26.5	)
AA	(1.2		)	(0.8		)	(0.9		)	(4.0		)	(0.1		)	(7.0		)
A	(2.2		)	(0.7		)	(0.9		)	—			(0.8		)	(4.6		)
BBB	—			—			—			—			—			—
Total commercial mortgage- backed securities	$	(9.4	)	$	(9.7	)	$	(6.7	)	$	(11.3	)	$	(1.0	)	$	(38.1	)

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Other asset-backed securities — Other asset-backed securities pay down based on cash flow received from the underlying pool of assets, such as receivables on auto loans, student loans, credit cards, etc. As of June 30, 2015 (Successor Company), these holdings were approximately $1.1 billion. As of December 31, 2014 (Predecessor Company), these holdings were approximately $1.1 billion.

The following table includes the percentages of our other asset-backed holdings, grouped by rating category, as of June 30, 2015 (Successor Company):

	Percentage of
	Other Asset-
	Backed
Rating	Securities
AAA	54.2	%
AA	19.0
A	14.6
BBB	0.7
Below investment grade	11.5
	100.0	%

The following tables categorize the estimated fair value and unrealized gain/(loss) of our asset-backed securities as of June 30, 2015 (Successor Company):

Other Asset-Backed Securities

	Estimated Fair Value of Security by Year of Security Origination
	2011 and
Rating	Prior			2012			2013			2014			2015		Total
	(Dollars In Millions)
AAA	$	492.8		$	43.3		$	18.6		$	24.5		$	—	$	579.2
AA	154.7			48.8			—			—			—		203.5
A	67.4			48.3			30.7			10.1			—		156.5
BBB	7.6			—			—			—			—		7.6
Below investment grade	122.1			—			—			—			—		122.1
Total other asset-backed securities	$	844.6		$	140.4		$	49.3		$	34.6		$	—	$	1,068.9
	Estimated Unrealized Gain (Loss) of Security by Year of Security Origination
	2011 and
Rating	Prior			2012			2013			2014			2015		Total
	(Dollars In Millions)
AAA	$	(13.3	)	$	(1.5	)	$	(1.3	)	$	(0.8	)	$	—	$	(16.9	)
AA	(0.1		)	0.5			—			—			—		0.4
A	(3.6		)	0.4			(2.8		)	(0.4		)	—		(6.4		)
BBB	0.1			—			—			—			—		0.1
Below investment grade	(0.3		)	—			—			—			—		(0.3		)
Total other asset-backed securities	$	(17.2	)	$	(0.6	)	$	(4.1	)	$	(1.2	)	$	—	$	(23.1	)

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We obtained ratings of our fixed maturities from Moody’s Investors Service, Inc. (“Moody’s”), Standard & Poor’s Corporation (“S&P”), and/or Fitch Ratings (“Fitch”). If a fixed maturity is not rated by Moody’s, S&P, or Fitch, we use ratings from the National Association of Insurance Commissioners (“NAIC”), or we rate the fixed maturity based upon a comparison of the unrated issue to rated issues of the same issuer or rated issues of other issuers with similar risk characteristics. As of June 30, 2015 (Successor Company), 98.5% of our fixed maturities were rated by Moody’s, S&P, Fitch, and/or the NAIC.

The industry segment composition of our fixed maturity securities is presented in the following table:

	Successor				Predecessor
	Company				Company
	As of		% Fair		As of		% Fair
	June 30, 2015		Value		December 31, 2014		Value
	(Dollars In Thousands)				(Dollars In Thousands)
Banking	$	3,269,237	9.0	%	$	2,933,212	7.9	%
Other finance	424,488		1.2		666,403		1.8
Electric	3,766,654		10.4		4,062,991		10.9
Energy and natural gas	4,463,595		12.2		4,598,633		12.4
Insurance	2,897,451		8.0		2,972,363		8.0
Communications	1,407,573		3.9		1,504,581		4.0
Basic industrial	1,698,740		4.7		1,764,175		4.7
Consumer noncyclical	3,026,928		8.3		3,247,522		8.7
Consumer cyclical	1,680,642		4.6		1,989,115		5.3
Finance companies	175,197		0.5		242,081		0.7
Capital goods	1,377,217		3.8		1,371,046		3.7
Transportation	970,957		2.7		995,112		2.7
Other industrial	301,314		0.8		338,285		0.9
Brokerage	472,536		1.3		607,445		1.6
Technology	1,229,389		3.4		1,079,840		2.9
Real estate	199,094		0.5		246,712		0.7
Other utility	226,873		0.6		238,088		0.6
Commercial mortgage-backed securities	1,349,470		3.7		1,328,363		3.6
Other asset-backed securities	1,068,902		2.9		1,113,955		3.0
Residential mortgage-backed non-agency securities	925,750		2.5		779,612		2.1
Residential mortgage-backed agency securities	949,214		2.6		926,760		2.5
U.S. government-related securities	1,842,794		5.1		1,679,356		4.5
Other government-related securities	76,872		0.2		77,204		0.2
State, municipals, and political divisions	1,892,479		5.2		2,013,135		5.4
Preferred stock	69,243		0.2		—		—
Other	565,334		1.7		435,000		1.2
Total	$	36,327,943	100.0	%	$	37,210,989	100.0	%

The preferred stock shown above as of June 30, 2015 (Successor Company) is included in the equity securities total as of December 31, 2014 (Predecessor Company).

Our investments classified as available-for-sale and trading in debt and equity securities are reported at fair value. Our investments classified as held-to-maturity are reported at amortized cost. As of June 30, 2015 (Successor Company), our fixed maturity investments (bonds and redeemable preferred stocks) had a fair value of $36.3 billion, which was 6.0% below amortized cost of $38.6 billion. These assets are invested for terms approximately corresponding to anticipated future benefit payments. Thus, market fluctuations are not expected to adversely affect liquidity.

Fair values for private, non-traded securities are determined as follows: 1) we obtain estimates from independent pricing services and 2) we estimate fair value based upon a comparison to quoted issues of the same issuer

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or issues of other issuers with similar terms and risk characteristics. We analyze the independent pricing services valuation methodologies and related inputs, including an assessment of the observability of market inputs. Upon obtaining this information related to fair value, management makes a determination as to the appropriate valuation amount.

Mortgage Loans

We invest a portion of our investment portfolio in commercial mortgage loans. As of June 30, 2015 (Successor Company), our mortgage loan holdings were approximately $5.7 billion. We have specialized in making loans on either credit-oriented commercial properties or credit-anchored strip shopping centers and apartments. Our underwriting procedures relative to our commercial loan portfolio are based, in our view, on a conservative and disciplined approach. We concentrate on a small number of commercial real estate asset types associated with the necessities of life (retail, multi-family, senior living, professional office buildings, and warehouses). We believe that these asset types tend to weather economic downturns better than other commercial asset classes in which we have chosen not to participate. We believe this disciplined approach has helped to maintain a relatively low delinquency and foreclosure rate throughout our history. The majority of our mortgage loans portfolio was underwritten and funded by us. From time to time, we may acquire loans in conjunction with an acquisition.

Our commercial mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, and net of valuation allowances. Interest income is accrued on the principal amount of the loan based on the loan’s contractual interest rate. Amortization of premiums and discounts is recorded using the effective yield method. Interest income, amortization of premiums and discounts, and prepayment fees are reported in net investment income.

Certain of the mortgage loans have call options between 3 and 10 years. However, if interest rates were to significantly increase, we may be unable to exercise the call options on our existing mortgage loans commensurate with the significantly increased market rates. As of June 30, 2015, assuming the loans are called at their next call dates, approximately $121.1 million would become due for the remainder of 2015, $953.0 million in 2016 through 2020, $377.9 million in 2021 through 2025, and $118.3 million thereafter.

We also offer a type of commercial mortgage loan under which we will permit a loan-to-value ratio of up to 85% in exchange for a participating interest in the cash flows from the underlying real estate. As of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), approximately $548.4 million and $553.6 million, respectively, of our mortgage loans had this participation feature. Cash flows received as a result of this participation feature are recorded as interest income. During the three months ended June 30, 2015 (Successor Company) the period of February 1, 2015 to June 30, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the three and six months ended June 30, 2014 (Predecessor Company), we recognized $3.3 million, $5.1 million, $0.1 million, $2.8 million, and $5.8 million of participating mortgage loan income, respectively.

We record mortgage loans net of an allowance for credit losses. This allowance is calculated through analysis of specific loans that have indicators of potential impairment based on current information and events. As of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), our allowance for mortgage loan credit losses was $0.5 million and $5.7 million, respectively. While our mortgage loans do not have quoted market values, as of June 30, 2015 (Successor Company), we estimated the fair value of our mortgage loans to be $5.5 billion (using discounted cash flows from the next call date), which was approximately 2.3% less than the amortized cost, less any related loan loss reserve.

At the time of origination, our mortgage lending criteria targets that the loan-to-value ratio on each mortgage is 75% or less. We target projected rental payments from credit anchors (i.e., excluding rental payments from smaller local tenants) of 70% of the property’s projected operating expenses and debt service.

As of June 30, 2015 (Successor Company), approximately $4.2 million, or 0.01%, of invested assets consisted of nonperforming mortgage loans, restructured loans, and/or mortgage loans that were foreclosed and were converted to real estate properties. We do not expect these investments to adversely affect its liquidity or ability to maintain proper matching of assets and liabilities. During the three months ended June 30, 2015 (Successor Company),

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the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), we entered into certain mortgage loan transactions that were accounted for as troubled debt restructurings under Topic 310 of the FASB ASC. For all mortgage loans, the impact of troubled debt restructurings is generally reflected in our investment balance and in the allowance for mortgage loan credit losses. Transactions accounted for as troubled debt restructurings during the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company) included either the acceptance of assets in satisfaction of principal during the respective periods or at a future date, and were the result of agreements between the creditor and the debtor. During the period of February 1, 2015 to June 30, 2015 (Successor Company), we accepted or agreed to accept assets of $1.5 million in satisfaction of $2.0 million of principal and for the period of January 1, 2015 to January 31, 2015 (Predecessor Company), we accepted or agreed to accept assets of $11.3 million in satisfaction of $13.8 million of principal. These transactions resulted in no material realized losses in our investment in mortgage loans net of existing allowances for mortgage loans losses for the period of February 1, 2015 to June 30, 2015 (Successor Company). Of the mortgage loan transactions accounted for as troubled debt restructurings, $1.5 million remain on our balance sheet as of June 30, 2015 (Successor Company).

Our mortgage loan portfolio consists of two categories of loans: 1) those not subject to a pooling and servicing agreement and 2) those subject to a contractual pooling and servicing agreement. As of June 30, 2015 (Successor Company), $4.2 million of mortgage loans not subject to a pooling and servicing agreement were nonperforming mortgage loans, restructured loans, and/or mortgage loans that were foreclosed and were converted to real estate properties. None of the restructured loans were nonperforming during the periods of February 1, 2015 to June 30, 2015 (Successor Company) and January 1, 2015 to January 31, 2015 (Predecessor Company). We did not foreclose on any nonperforming loans not subject to a pooling and servicing agreement during the periods of February 1, 2015 to June 30, 2015 (Successor Company) and January 1, 2015 to January 31, 2015 (Predecessor Company).

As of June 30, 2015 (Successor Company), none of the loans subject to a pooling and servicing agreement were nonperforming or restructured. We did not foreclose on any nonperforming loans subject to pooling and servicing agreement during the periods of February 1, 2015 to June 30, 2015 (Successor Company) and January 1, 2015 to January 31, 2015 (Predecessor Company).

We do not expect these investments to adversely affect our liquidity or ability to maintain proper matching of assets and liabilities.

It is our policy to cease to carry accrued interest on loans that are over 90 days delinquent. For loans less than 90 days delinquent, interest is accrued unless it is determined that the accrued interest is not collectible. If a loan becomes over 90 days delinquent, it is our general policy to initiate foreclosure proceedings unless a workout arrangement to bring the loan current is in place. For loans subject to a pooling and servicing agreement, there are certain additional restrictions and/or requirements related to workout proceedings, and as such, these loans may have different attributes and/or circumstances affecting the status of delinquency or categorization of those in nonperforming status.

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Risk Management and Impairment Review

We monitor the overall credit quality of our portfolio within established guidelines. The following table includes our available-for-sale fixed maturities by credit rating as of June 30, 2015 (Successor Company):

			Percent of
Rating	Fair Value		Fair Value
	(Dollars In Thousands)
AAA	$	4,412,870	13.4	%
AA	2,428,190		7.4
A	10,586,098		32.1
BBB	14,012,394		42.4
Investment grade	31,439,552		95.3
BB	1,114,867		3.4
B	79,195		0.2
CCC or lower	382,263		1.1
Below investment grade	1,576,325		4.7
Total	$	33,015,877	100.0	%

Not included in the table above are $2.4 billion of investment grade and $308.8 million of below investment grade fixed maturities classified as trading securities and $565.3 million of fixed maturities classified as held-to-maturity.

Limiting bond exposure to any creditor group is another way we manage credit risk. We held no credit default swaps on the positions listed below as of June 30, 2015 (Successor Company). The following table summarizes our ten largest maturity exposures to an individual creditor group as of June 30, 2015 (Successor Company):

	Fair Value of
	Funded		Unfunded		Total
Creditor	Securities		Exposures		Fair Value
	(Dollars In Millions)
Federal National Mortgage Association	$	209.2	$	—	$	209.2
Berkshire Hathaway Inc.	208.7		—		208.7
Wells Fargo & Co.	198.7		0.1		198.8
JP Morgan Chase and Company	156.8		22.9		179.7
Duke Electric Corp	178.0		—		178.0
Bank of America Corp	177.5		0.3		177.8
General Electric	169.9		—		169.9
Comcast Corp.	169.1		—		169.1
Nextera Energy Inc.	166.5		—		166.5
Rio Tinto	163.6		—		163.6

Determining whether a decline in the current fair value of invested assets is an other-than-temporary decline in value is both objective and subjective, and can involve a variety of assumptions and estimates, particularly for investments that are not actively traded in established markets. We review our positions on a monthly basis for possible credit concerns and review our current exposure, credit enhancement, and delinquency experience.

Management considers a number of factors when determining the impairment status of individual securities. These include the economic condition of various industry segments and geographic locations and other areas of identified risks. Since it is possible for the impairment of one investment to affect other investments, we engage in ongoing risk management to safeguard against and limit any further risk to our investment portfolio. Special attention is given to correlative risks within specific industries, related parties, and business markets.

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For certain securitized financial assets with contractual cash flows, including RMBS, CMBS, and other asset-backed securities (collectively referred to as asset-backed securities or “ABS”), GAAP requires us to periodically update our best estimate of cash flows over the life of the security. If the fair value of a securitized financial asset is less than its cost or amortized cost and there has been a decrease in the present value of the expected cash flows since the last revised estimate, considering both timing and amount, an other-than-temporary impairment charge is recognized. Estimating future cash flows is a quantitative and qualitative process that incorporates information received from third party sources along with certain internal assumptions and judgments regarding the future performance of the underlying collateral. Projections of expected future cash flows may change based upon new information regarding the performance of the underlying collateral. In addition, we consider our intent and ability to retain a temporarily depressed security until recovery.

Securities in an unrealized loss position are reviewed at least quarterly to determine if an other-than-temporary impairment is present based on certain quantitative and qualitative factors. We consider a number of factors in determining whether the impairment is other-than-temporary. These include, but are not limited to: 1) actions taken by rating agencies, 2) default by the issuer, 3) the significance of the decline, 4) an assessment of our intent to sell the security (including a more likely than not assessment of whether we will be required to sell the security) before recovering the security’s amortized cost, 5) the time period during which the decline has occurred, 6) an economic analysis of the issuer’s industry, and 7) the financial strength, liquidity, and recoverability of the issuer. Management performs a security-by-security review each quarter in evaluating the need for any other-than-temporary impairments. Although no set formula is used in this process, the investment performance, collateral position, and continued viability of the issuer are significant measures considered, along with an analysis regarding our expectations for recovery of the security’s entire amortized cost basis through the receipt of future cash flows. Based on our analysis, for the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company), we concluded that approximately $5.7 million and $5.7 million, respectively, of investment securities in an unrealized loss position was other-than-temporarily impaired, due to credit related factors, resulting in a charge to earnings. Additionally, we recognized $7.7 million and $7.7 million of non-credit losses previously recorded in other comprehensive income (loss) that were recorded in earnings. For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), we concluded that approximately $0.5 million of investment securities in an unrealized loss position were other-than-temporarily impaired, due to credit-related factors, resulting in a charge to earnings. The $0.5 million of credit losses included $0.1 million of non-credit losses previously recorded in other comprehensive income.

There are certain risks and uncertainties associated with determining whether declines in fair values are other-than-temporary. These include significant changes in general economic conditions and business markets, trends in certain industry segments, interest rate fluctuations, rating agency actions, changes in significant accounting estimates and assumptions, commission of fraud, and legislative actions. We continuously monitor these factors as they relate to the investment portfolio in determining the status of each investment.

During 2014 and 2015, the energy and natural gas sector experienced increased volatility due to the decline in oil prices. A prolonged decline in oil prices could have a broad economic impact and put financial stress on companies in this sector. We continue to monitor our exposure to companies within and exposed to this sector closely. Our current exposure is predominantly with investment grade securities of companies with ample liquidity to weather a prolonged decline in oil prices. Many of these companies have displayed financial discipline by reducing capital expenditures to conserve cash and maintain their credit ratings.

During 2015, the metals and mining sector (a sub-sector of the basic industrial sector) experienced increased volatility due to the decline in precious and base metal prices. A prolonged decline in these prices could have a broad economic impact and put financial stress on companies in this sector. We continue to monitor our exposure to companies within and exposed to this sector closely. Our current exposure is predominantly with investment grade securities of companies with ample liquidity to weather a prolonged decline in these prices. Many of these companies have displayed financial discipline by reducing capital expenditures and reducing dividends to conserve cash and maintain their credit ratings. As of June 30, 2015 (Successor Company), we concluded that certain investment securities in an unrealized loss position were other-than-temporarily impaired due to credit related factors, resulting in a $5.6 million impairment recognized in net income.

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We have deposits with certain financial institutions which exceed federally insured limits. We have reviewed the creditworthiness of these financial institutions and believe that there is minimal risk of a material loss.

Certain European countries have experienced varying degrees of financial stress. Risks from the debt crisis in Europe could continue to disrupt the financial markets, which could have a detrimental impact on global economic conditions and on sovereign and non-sovereign obligations. There remains considerable uncertainty as to future developments in the European debt crisis and the impact on financial markets.

The chart shown below includes our non-sovereign fair value exposures in these countries as of June 30, 2015 (Successor Company). As June 30, 2015 (Successor Company), we had no unfunded exposure and had no direct sovereign fair value exposure.

					Total Gross
	Non-sovereign Debt				Funded
Financial Instrument and Country	Financial		Non-financial		Exposure
	(Dollars In Millions)
Securities:
United Kingdom	$	487.0	$	572.7	$	1,059.7
Netherlands	156.2		201.6		357.8
France	105.6		214.2		319.8
Switzerland	154.0		136.4		290.4
Germany	116.3		96.8		213.1
Sweden	131.1		31.3		162.4
Spain	—		105.1		105.1
Italy	—		100.6		100.6
Norway	12.2		90.7		102.9
Belgium	—		91.4		91.4
Ireland	11.0		57.2		68.2
Luxembourg	—		55.4		55.4
Portugal	—		15.6		15.6
Denmark	13.7		—		13.7
Total securities	1,187.1		1,769.0		2,956.1
Derivatives:
United Kingdom	30.0		—		30.0
Germany	18.7		—		18.7
Switzerland	9.7		—		9.7
France	4.0		—		4.0
Total derivatives	62.4		—		62.4
Total securities	$	1,249.5	$	1,769.0	$	3,018.5

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Realized Gains and Losses

The following table sets forth realized investment gains and losses for the periods shown:

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Fixed maturity gains - sales	$	5,391		$	6,898		$	6,920		$	20,437		$	28,064
Fixed maturity losses - sales	(2,052		)	(3,186		)	(29		)	(239		)	(496		)
Equity gains - sales	44			44			—			—			—
Equity losses - sales	(23		)	(23		)	—			—			—
Impairments on fixed maturity securities	(5,734		)	(5,734		)	—			(1,460		)	(3,051		)
Impairments on equity securities	—			—			(481		)	—			—
Modco trading portfolio	(108,741		)	(141,901		)	73,062			60,989			127,292
Other	3,044			775			1,200			(1,039		)	(2,598		)
Total realized gains (losses) - investments	$	(108,071	)	$	(143,127	)	$	80,672		$	78,688		$	149,211
Derivatives related to VA contracts:
Interest rate futures - VA	$	(14,183	)	$	(14,231	)	$	1,413		$	6,548		$	10,798
Equity futures - VA	(5,267		)	(37,736		)	9,221			(7,259		)	(9,910		)
Currency futures - VA	(8,709		)	(2,572		)	7,778			(2,887		)	(4,165		)
Variance swaps - VA	—			—			—			(823		)	(2,673		)
Equity options - VA	(3,550		)	(25,324		)	3,047			(20,949		)	(33,290		)
Interest rate swaptions - VA	2,547			(8,781		)	9,268			(4,998		)	(14,401		)
Interest rate swaps - VA	(121,167		)	(175,958		)	122,710			45,169			102,537
Embedded derivative - GMWB	132,657			245,917			(207,018		)	(47,389		)	(129,676		)
Total derivatives related to VA contracts	(17,672		)	(18,685		)	(53,581		)	(32,588		)	(80,780		)
Derivatives related to FIA contracts:
Embedded derivative - FIA	290			(2,293		)	1,769			(8,307		)	(6,574		)
Equity futures - FIA	123			307			(184		)	605			950
Volatility futures - FIA	25			29			—			8			8
Equity options - FIA	1,226			5,601			(2,617		)	2,984			3,978
Total derivatives related to FIA contracts	1,664			3,644			(1,032		)	(4,710		)	(1,638		)
Derivatives related to IUL contracts:
Embedded derivative - IUL	1,538			1,795			(486		)	(285		)	(285		)
Equity futures - IUL	9			23			3			—			—
Equity options - IUL	(78		)	62			(115		)	—			—
Total derivatives related to IUL contracts	1,469			1,880			(598		)	(285		)	(285		)
Embedded derivative - Modco reinsurance treaties	109,131			141,322			(68,026		)	(52,202		)	(112,371		)
Other derivatives	11			83			(37		)	(141		)	(202		)
Total realized gains (losses) - derivatives	$	94,603		$	128,244		$	(123,274	)	$	(89,926	)	$	(195,276	)

Realized gains and losses on investments reflect portfolio management activities designed to maintain proper matching of assets and liabilities and to enhance long-term investment portfolio performance. The change in net realized investment gains (losses), excluding impairments and Modco trading portfolio activity during the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), primarily reflects the normal operation of our asset/liability program within the context of the changing interest rate and spread environment, as well as tax planning strategies designed to utilize capital loss carryforwards.

Realized losses are comprised of both write-downs of other-than-temporary impairments and actual sales of investments. For the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to

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June 30, 2015 (Successor Company), we concluded that approximately $5.7 million and $5.7 million, respectively, of investment securities in an unrealized loss position was other-than-temporarily impaired, due to credit related factors, resulting in a charge to earnings. Additionally, we recognized $7.7 million and $7.7 million of non-credit losses previously recorded in other comprehensive income (loss) that were recorded in earnings. For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), we recognized pre-tax other-than-temporary impairments of $0.5 million due to credit-related factors, resulting in a charge to earnings. Of the credit losses, $0.1 million were non-credit losses previously recorded in other comprehensive income. For the three and six months ended June 30, 2014 (Predecessor Company), we recognized pre-tax other-than-temporary impairments of $1.5 million and $3.1 million, respectively. These other-than-temporary impairments resulted from our analysis of circumstances and our belief that credit events, loss severity, changes in credit enhancement, and/or other adverse conditions of the respective issuers have caused, or will lead to, a deficiency in the contractual cash flows related to these investments. These other-than-temporary impairments, net of Modco recoveries, are presented in the chart below:

	Successor				Predecessor
	Company				Company
	For The Three		February 1, 2015		January 1, 2015		For The Three		For The Six
	Months Ended		to		to		Months Ended		Months Ended
	June 30, 2015		June 30, 2015		January 31, 2015		June 30, 2014		June 30, 2014
	(Dollars In Millions)				(Dollars In Millions)
Alt-A MBS	$	—	$	—	$	0.3	$	1.0	$	2.0
Other MBS	0.1		0.1		0.2		0.5		1.1
Corporate securities	5.6		5.6		—		—		—
Total	$	5.7	$	5.7	$	0.5	$	1.5	$	3.1

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As previously discussed, management considers several factors when determining other-than-temporary impairments. Although we purchase securities with the intent to hold them until maturity, we may change our position as a result of a change in circumstances. Any such decision is consistent with our classification of all but a specific portion of our investment portfolio as available-for-sale. For the period of February 1, 2015 to June 30, 2015 (Successor Company) and for the period of January 1, 2015 to January 31, 2015 (Predecessor Company), we sold securities in an unrealized loss position with a fair value of $49.3 million and $0.4 million, respectively. For such securities, the proceeds, realized loss, and total time period that the security had been in an unrealized loss position are presented in the table below for the period of February 1, 2015 to June 30, 2015 (Successor Company) and for the period of January 1, 2015 to January 31, 2015 (Predecessor Company):

Successor Company

	Proceeds		% Proceeds		Realized Loss			% Realized Loss
	(Dollars In Thousands)
<= 90 days	$	20,682	41.9	%	$	(1,135	)	35.3	%
>90 days but <= 180 days	28,644		58.1		(2,074		)	64.7
>180 days but <= 270 days	—		—		—			—
>270 days but <= 1 year	—		—		—			—
>1 year	—		—		—			—
Total	$	49,326	100.0	%	$	(3,209	)	100.0	%

Predecessor Company

	Proceeds		% Proceeds		Realized Loss			% Realized Loss
	(Dollars In Thousands)
<= 90 days	$	87	20.1	%	$	(6	)	20.8	%
>90 days but <= 180 days	—		—		—			—
>180 days but <= 270 days	—		—		—			—
>270 days but <= 1 year	4		0.9		—			1.5
>1 year	344		79.0		(23		)	77.7
Total	$	435	100.0	%	$	(29	)	100.0	%

For the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company) we sold securities in an unrealized loss position with a fair value (proceeds) of $28.6 million and $49.3 million, respectively. The loss realized on the sale of these securities was $2.1 million and $3.2 million for the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company). We made the decision to exit these holdings in conjunction with our overall asset liability management process.

For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), we sold securities in an unrealized loss position with a fair value (proceeds) of $0.4 million. We had an immaterial loss for the period of January 1, 2015 to January 31, 2015 (Predecessor Company). We made the decision to exit these holdings in conjunction with our overall asset liability management process.

For the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company), and for the period of January 1, 2015 to January 31, 2015 (Predecessor Company), we sold securities in an unrealized gain position with a fair value of $432.2 million, $715.0 million, and $172.6 million, respectively. The gain realized on the sale of these securities was $5.4 million, $6.9 million, and $6.9 million, respectively.

The $3.0 million of other realized gains recognized for the three months ended June 30, 2015 (Successor Company), consisted of realized gains related to mortgage loans of $3.0 million. The $0.7 million of other realized

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gains recognized for the period of February 1, 2015 to June 30, 2015 (Successor Company), primarily consisted of realized gains related to mortgage loans.

The $1.2 million of other realized gains recognized for the period of January 1, 2015 to January 31, 2015 (Predecessor Company), primarily consisted of a decrease in the mortgage loan reserves of $2.3 million, mortgage loan losses of $1.0 million, and partnership losses of $0.1 million.

For the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company) net losses of $108.7 million and $141.9 million, respectively, primarily related to changes in fair value on our Modco trading portfolios were included in realized gains and losses. Of this amount, approximately $0.1 million of losses and $2.3 million of losses, respectively, were realized through the sale of certain securities, which will be reimbursed to our reinsurance partners over time through the reinsurance settlement process for this block of business.

For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), net gains of $73.1 million primarily related to changes in fair value on our Modco trading portfolios were included in realized gains and losses. Of this amount, approximately $1.3 million of gains were realized through the sale of certain securities, which will be reimbursed to our reinsurance partners over time through the reinsurance settlement process for this block of business.

The Modco embedded derivative associated with the trading portfolios had realized pre-tax gains of $109.1 million and $141.3 million, respectively, during the three months ended June 30, 2015 (Successor Company) and during the period of February 1, 2015 to June 30, 2015 (Successor Company). These gains were due to higher treasury yields and credit spreads.

The Modco embedded derivative associated with the trading portfolios had realized pre-tax losses of $68.0 million during the period of January 1, 2015 to January 31, 2015 (Predecessor Company). These losses were due to lower treasury yields.

Realized investment gains and losses related to derivatives represent changes in their fair value during the period and termination gains/(losses) on those derivatives that were closed during the period.

We use various derivative instruments to manage risks related to certain life insurance and annuity products. We can use these derivatives as economic hedges against risks inherent in the products. These risks have a direct impact on the cost of these products and are correlated with the equity markets, interest rates, foreign currency levels, and overall volatility. The hedged risks are recorded through the recognition of embedded derivatives associated with the products. These products include the GMWB rider associated with the variable annuity, fixed indexed annuity products as well as indexed universal life products. During the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company), and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), we experienced net realized losses on derivatives related to VA contracts of approximately $17.7 million, $18.7 million, and $53.6 million, respectively. These net losses were impacted by changes in the policyholder behavior assumptions, primarily the lowering of assumed lapses and increased utilization rates, used to value the GMWB embedded derivatives.

We also use various swaps and other types of derivatives to mitigate risk related to other exposures. These contracts generated immaterial gains for the three months ended June 30, 2015 (Successor Company) and net pre-tax gains of $0.1 million for the period of February 1, 2015 to June 30, 2015 (Successor Company) and immaterial losses for the period of January 1, 2015 to January 31, 2015 (Predecessor Company).

Unrealized Gains and Losses — Available-for-Sale Securities

The information presented below relates to investments at a certain point in time and is not necessarily indicative of the status of the portfolio at any time after December 31, 2014 (Predecessor Company), the balance sheet date. Information about unrealized gains and losses is subject to rapidly changing conditions, including volatility of financial markets and changes in interest rates. Management considers a number of factors in determining if an unrealized loss is other-than-temporary, including the expected cash to be collected and the intent, likelihood, and/or ability to hold the security until recovery. Consistent with our long-standing practice, we do not utilize a “bright line

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test” to determine other-than-temporary impairments. On a quarterly basis, we perform an analysis on every security with an unrealized loss to determine if an other-than-temporary impairment has occurred. This analysis includes reviewing several metrics including collateral, expected cash flows, ratings, and liquidity. Furthermore, since the timing of recognizing realized gains and losses is largely based on management’s decisions as to the timing and selection of investments to be sold, the tables and information provided below should be considered within the context of the overall unrealized gain/(loss) position of the portfolio. We had an overall net unrealized loss of $2.1 billion, prior to tax and the related impact of certain insurance assets and liabilities offsets, as of June 30, 2015 (Successor Company), and an overall net unrealized gain of $3.1 billion as of December 31, 2014 (Predecessor Company).

For fixed maturity and equity securities held that are in an unrealized loss position as of June 30, 2015 (Successor Company), the fair value, amortized cost, unrealized loss, and total time period that the security has been in an unrealized loss position are presented in the table below:

	Fair		% Fair		Amortized		% Amortized		Unrealized			% Unrealized
	Value		Value		Cost		Cost		Loss			Loss
	(Dollars In Thousands)
<= 90 days	$	14,037,075	46.3	%	$	14,819,002	45.5	%	$	(781,927	)	35.5	%
>90 days but <= 180 days	16,301,555		53.7		17,720,616		54.5		(1,419,061		)	64.5
>180 days but <= 270 days	—		—		—		—		—			—
>270 days but <= 1 year	—		—		—		—		—			—
>1 year but <= 2 years	—		—		—		—		—			—
>2 years but <= 3 years	—		—		—		—		—			—
>3 years but <= 4 years	—		—		—		—		—			—
>4 years but <= 5 years	—		—		—		—		—			—
>5 years	—		—		—		—		—			—
Total	$	30,338,630	100.0	%	$	32,539,618	100.0	%	$	(2,200,988	)	100.0	%

The book value of our investment portfolio was marked to fair value as of February 1, 2015 (Successor Company), in conjunction with the Dai-ichi Merger which resulted in the elimination of previously unrealized gains and losses from accumulated other comprehensive income. The level of interest rates as of February 1, 2015 (Successor Company) resulted in an increase in the fair value of our investments. Since February 1, 2015 (Successor Company) interest rates have increased resulting in net unrealized losses in our investment portfolio.

As of June 30, 2015 (Successor Company), the Barclays Investment Grade Index was priced at 141.8 bps versus a 10 year average of 167.9 bps. Similarly, the Barclays High Yield Index was priced at 514.2 bps versus a 10 year average of 612.2 bps. As of June 30, 2015 (Successor Company), the five, ten, and thirty-year U.S. Treasury obligations were trading at levels of 1.649%, 2.354%, and 3.124%, as compared to 10 year averages of 2.396%, 3.213%, and 3.955%, respectively.

As of June 30, 2015 (Successor Company), 98.7% of the unrealized loss was associated with securities that were rated investment grade. We have examined the performance of the underlying collateral and cash flows and expect that our investments will continue to perform in accordance with their contractual terms. Factors such as credit enhancements within the deal structures and the underlying collateral performance/characteristics support the recoverability of the investments. Based on the factors discussed, we do not consider these unrealized loss positions to be other-than-temporary. However, from time to time, we may sell securities in the ordinary course of managing our portfolio to meet diversification, credit quality, yield enhancement, asset/liability management, and liquidity requirements.

Expectations that investments in mortgage-backed and asset-backed securities will continue to perform in accordance with their contractual terms are based on assumptions that a market participant would use in determining the current fair value. It is reasonably possible that the underlying collateral of these investments will perform worse than current market expectations and that such an event may lead to adverse changes in the cash flows on our holdings of these types of securities. This could lead to potential future write-downs within our portfolio of mortgage-backed and asset-backed securities. Expectations that our investments in corporate securities and/or debt obligations will continue to perform in accordance with their contractual terms are based on evidence gathered through our normal credit

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surveillance process. Although we do not anticipate such events, it is reasonably possible that issuers of our investments in corporate securities will perform worse than current expectations. Such events may lead us to recognize potential future write-downs within our portfolio of corporate securities. It is also possible that such unanticipated events would lead us to dispose of those certain holdings and recognize the effects of any such market movements in our financial statements.

As of June 30, 2015 (Successor Company), there were estimated gross unrealized losses of $1.8 million related to our mortgage-backed securities collateralized by Alt-A mortgage loans. Gross unrealized losses in our securities collateralized by Alt-A residential mortgage loans as of June 30, 2015 (Successor Company), were primarily the result of continued widening spreads, representing marketplace uncertainty arising from higher defaults in Alt-A residential mortgage loans and rating agency downgrades of securities collateralized by Alt-A residential mortgage loans.

We have no material concentrations of issuers or guarantors of fixed maturity securities. The industry segment composition of all securities in an unrealized loss position held as of June 30, 2015 (Successor Company) is presented in the following table:

	Fair		% Fair		Amortized		% Amortized		Unrealized			% Unrealized
	Value		Value		Cost		Cost		Loss			Loss
	(Dollars In Thousands)
Banking	$	2,984,741	9.8	%	$	3,100,229	9.5	%	$	(115,488	)	5.2	%
Other finance	395,368		1.3		414,568		1.3		(19,200		)	0.9
Electric	3,399,647		11.3		3,748,256		11.5		(348,609		)	15.7
Energy and natural gas	3,446,607		11.4		3,710,578		11.4		(263,971		)	12.0
Insurance	2,678,261		8.9		2,938,848		9.0		(260,587		)	11.7
Communications	1,264,594		4.2		1,410,660		4.4		(146,066		)	6.5
Basic industrial	1,436,711		4.7		1,553,953		4.8		(117,242		)	5.3
Consumer noncyclical	2,773,902		9.1		3,027,738		9.3		(253,836		)	11.5
Consumer cyclical	1,342,319		4.5		1,443,113		4.5		(100,794		)	4.6
Finance companies	170,043		0.6		177,336		0.5		(7,293		)	0.3
Capital goods	1,222,993		4.0		1,315,295		4.0		(92,302		)	4.2
Transportation	853,742		2.8		919,786		2.8		(66,044		)	3.0
Other industrial	265,901		0.9		288,477		0.9		(22,576		)	1.0
Brokerage	418,070		1.4		444,628		1.4		(26,558		)	1.2
Technology	1,136,141		3.7		1,208,743		3.7		(72,602		)	3.3
Real estate	200,498		0.5		205,722		0.5		(5,224		)	0.2
Other utility	223,051		0.7		243,496		0.7		(20,445		)	0.9
Commercial mortgage-backed securities	1,125,342		3.7		1,159,444		3.7		(34,102		)	1.5
Other asset-backed securities	723,695		2.4		746,635		2.3		(22,940		)	1.0
Residential mortgage-backed non-agency securities	525,326		1.7		533,941		1.6		(8,615		)	0.4
Residential mortgage-backed agency securities	518,113		1.7		533,083		1.6		(14,970		)	0.7
U.S. government-related securities	1,569,203		5.2		1,612,186		5.0		(42,983		)	2.0
Other government-related securities	18,782		0.1		19,578		0.1		(796		)	—
States, municipals, and political divisions	1,583,913		5.2		1,718,963		5.3		(135,050		)	6.8
Preferred stock	61,667		0.2		64,362		0.2		(2,695		)	0.1
Total	$	30,338,630	100.0	%	$	32,539,618	100.0	%	$	(2,200,988	)	100.0	%

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The percentage of our unrealized loss positions, segregated by industry segment, is presented in the following table:

	Successor		Predecessor
	Company		Company
	As of		As of
	June 30, 2015		December 31, 2014
Banking	5.2	%	9.2	%
Other finance	0.9		0.8
Electric	15.7		0.6
Energy and natural gas	12.0		22.9
Insurance	11.7		4.0
Communications	6.5		2.6
Basic industrial	5.3		18.4
Consumer noncyclical	11.5		3.8
Consumer cyclical	4.6		4.4
Finance companies	0.3		0.4
Capital goods	4.2		1.0
Transportation	3.0		0.1
Other industrial	1.0		0.6
Brokerage	1.2		0.2
Technology	3.3		2.8
Real estate	0.2		—
Other utility	0.9		—
Commercial mortgage-backed securities	1.5		1.1
Other asset-backed securities	1.0		16.8
Residential mortgage-backed non-agency securities	0.4		5.4
Residential mortgage-backed agency securities	0.7		0.4
U.S. government-related securities	2.0		4.3
Other government-related securities	—		—
States, municipals, and political divisions	6.8		0.2
Preferred stock	0.1		—
Total	100.0	%	100.0	%

The range of maturity dates for securities in an unrealized loss position as of June 30, 2015 (Successor Company), varies, with 38.1% maturing in less than 5 years, 59.9% maturing between 5 and 10 years, and 2.0% maturing after 10 years. The following table shows the credit rating of securities in an unrealized loss position as of June 30, 2015 (Successor Company):

S&P or Equivalent	Fair		% Fair		Amortized		% Amortized		Unrealized			% Unrealized
Designation	Value		Value		Cost		Cost		Loss			Loss
	(Dollars In Thousands)
AAA/AA/A	$	16,424,265	54.1	%	$	17,601,013	54.1	%	$	(1,176,748	)	53.5	%
BBB	12,982,521		42.8		13,977,128		43.0		(994,607		)	45.2
Investment grade	29,406,786		96.9		31,578,141		97.1		(2,171,355		)	98.7
BB	674,556		2.2		693,898		2.1		(19,342		)	0.9
B	19,642		0.1		19,861		0.1		(219		)	—
CCC or lower	237,646		0.8		247,718		0.7		(10,072		)	0.4
Below investment grade	931,844		3.1		961,477		2.9		(29,633		)	1.3
Total	$	30,338,630	100.0	%	$	32,539,618	100.0	%	$	(2,200,988	)	100.0	%

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As of June 30, 2015 (Successor Company), we held a total of 2,435 positions that were in an unrealized loss position. Included in that amount were 130 positions of below investment grade securities with a fair value of $931.8 million that were in an unrealized loss position. Total unrealized losses related to below investment grade securities were $29.6 million, none of which had been in an unrealized loss position for more than twelve months. Below investment grade securities in an unrealized loss position were 2.1% of invested assets.

As of June 30, 2015 (Successor Company), securities in an unrealized loss position that were rated as below investment grade represented 3.1% of the total fair value and 1.3% of the total unrealized loss. We have the ability and intent to hold these securities to maturity. After a review of each security and its expected cash flows, we believe the decline in market value to be temporary.

The majority of our RMBS holdings as of June 30, 2015 (Successor Company), were super senior or senior bonds in the capital structure. Our total non-agency portfolio has a weighted-average life of 6.9 years. The following table categorizes the weighted-average life for our non-agency portfolio, by category of material holdings, as of June 30, 2015 (Successor Company):

	Weighted-Average
Non-agency portfolio	Life
Prime	7.88
Alt-A	4.45
Sub-prime	4.18

The following table includes the fair value, amortized cost, unrealized loss, and total time period that the security has been in an unrealized loss position for all below investment grade securities as of June 30, 2015 (Successor Company):

	Fair		% Fair		Amortized		% Amortized		Unrealized			% Unrealized
	Value		Value		Cost		Cost		Loss			Loss
	(Dollars In Thousands)
<= 90 days	$	683,679	73.4	%	$	704,243	73.2	%	$	(20,564	)	69.4	%
>90 days but <= 180 days	248,165		26.6		257,234		26.8		(9,069		)	30.6
>180 days but <= 270 days	—		—		—		—		—			—
>270 days but <= 1 year	—		—		—		—		—			—
>1 year but <= 2 years	—		—		—		—		—			—
>2 years but <= 3 years	—		—		—		—		—			—
>3 years but <= 4 years	—		—		—		—		—			—
>4 years but <= 5 years	—		—		—		—		—			—
>5 years	—		—		—		—		—			—
Total	$	931,844	100.0	%	$	961,477	100.0	%	$	(29,633	)	100.0	%

LIQUIDITY AND CAPITAL RESOURCES

Liquidity

Liquidity refers to a company’s ability to generate adequate amounts of cash to meet its needs. We meet our liquidity requirements primarily through positive cash flows from our operating subsidiaries. Primary sources of cash from the operating subsidiaries are premiums, deposits for policyholder accounts, investment sales and maturities, and investment income. Primary uses of cash include benefit payments, withdrawals from policyholder accounts, investment purchases, policy acquisition costs, interest payments, and other operating expenses. We believe that we have sufficient liquidity to fund our cash needs under normal operating scenarios.

In the event of significant unanticipated cash requirements beyond our normal liquidity needs, we have additional sources of liquidity available depending on market conditions and the amount and timing of the liquidity

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need. These additional sources of liquidity include cash flows from operations, the sale of liquid assets, accessing our credit facility, and other sources described herein.

Our decision to sell investment assets could be impacted by accounting rules, including rules relating to the likelihood of a requirement to sell securities before recovery of our cost basis. Under stressful market and economic conditions, liquidity may broadly deteriorate, which could negatively impact our ability to sell investment assets. If we require on short notice significant amounts of cash in excess of normal requirements, we may have difficulty selling investment assets in a timely manner, be forced to sell them for less than we otherwise would have been able to realize, or both.

While we anticipate that the cash flows of our operating subsidiaries will be sufficient to meet our investment commitments and operating cash needs in a normal credit market environment, we recognize that investment commitments scheduled to be funded may, from time to time, exceed the funds then available. Therefore, we have established repurchase agreement programs for certain of our insurance subsidiaries to provide liquidity when needed. We expect that the rate received on our investments will equal or exceed our borrowing rate. Under this program, we may, from time to time, sell an investment security at a specific price and agree to repurchase that security at another specified price at a later date. These borrowings are typically for a term less than 90 days. The market value of securities to be repurchased is monitored and collateral levels are adjusted where appropriate to protect the counterparty against credit exposure. Cash received is invested in fixed maturity securities, and the agreements provided for net settlement in the event of default or on termination of the agreements. As of June 30, 2015 (Successor Company), the fair value of securities pledged under the repurchase program was $657.4 million and the repurchase obligation of $602.2 million was included in our consolidated condensed balance sheets (at an average borrowing rate of 21 basis points). During the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the maximum balance outstanding at any one point in time related to these programs was $646.7 million and $175.0 million, respectively. The average daily balance was $507.2 million and $77.4 million (at an average borrowing rate of 17 and 16 basis points, respectively) during the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), respectively. As of December 31, 2014 (Predecessor Company), we had a $50.0 million outstanding balance related to such borrowings. During 2014, the maximum balance outstanding at any one point in time related to these programs was $633.7 million. The average daily balance was $470.4 million (at an average borrowing rate of 11 basis points) during the year ended December 31, 2014 (Predecessor Company).

Additionally, we may, from time to time, sell short-duration stable value products to complement our cash management practices. Depending on market conditions, we may also use securitization transactions involving our commercial mortgage loans to increase liquidity for the operating subsidiaries.

Credit Facility

Under a revolving line of credit arrangement that was in effect until February 2, 2015 (the “Credit Facility”), we had the ability to borrow on an unsecured basis up to an aggregate principal amount of $750 million. We had the right in certain circumstances to request that the commitment under the Credit Facility be increased up to a maximum principal amount of $1.0 billion. Balances outstanding under the Credit Facility accrued interest at a rate equal to, at the option of the Borrowers, (i) LIBOR plus a spread based on the ratings of our senior unsecured long-term debt (“Senior Debt”), or (ii) the sum of (A) a rate equal to the highest of (x) the Administrative Agent’s prime rate, (y) 0.50% above the Federal Funds rate, or (z) the one-month LIBOR plus 1.00% and (B) a spread based on the ratings of our Senior Debt. The Credit Facility also provided for a facility fee at a rate, 0.175%, that could vary with the ratings of our Senior Debt and that was calculated on the aggregate amount of commitments under the Credit Facility, whether used or unused. The Credit Facility provided that we were liable for the full amount of any obligations for borrowings or letters of credit, including those of PLICO, under the Credit Facility. The maturity date of the Credit Facility was July 17, 2017. We were not aware of any non-compliance with the financial debt covenants of the Credit Facility as of December 31, 2014 (Predecessor Company). There was an outstanding balance of $450.0 million bearing interest at a rate of LIBOR plus 1.20% under the Credit Facility as of December 31, 2014 (Predecessor Company). As of December 31, 2014 (Predecessor Company), PLICO had used $55.0 million of borrowing capacity by executing a Letter of Credit under the Credit Facility for the benefit of an affiliated captive reinsurance subsidiary of the Company. This Letter of Credit had not been drawn upon as of December 31, 2014 (Predecessor Company).

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On February 2, 2015, we amended and restated the Credit Facility (the “2015 Credit Facility”). Under the 2015 Credit Facility, we have the ability to borrow on an unsecured basis up to an aggregate principal amount of $1.0 billion. We have the right in certain circumstances to request that the commitment under the 2015 Credit Facility be increased up to a maximum principal amount of $1.25 billion. Balances outstanding under the 2015 Credit Facility accrue interest at a rate equal to, at the option of the Borrowers, (i) LIBOR plus a spread based on the ratings of our Senior Debt, or (ii) the sum of (A) a rate equal to the highest of (x) the Administrative Agent’s prime rate, (y) 0.50% above the Federal Funds rate, or (z) the one-month LIBOR plus 1.00% and (B) a spread based on the ratings of our Senior Debt. The 2015 Credit Facility also provided for a facility fee at a rate that varies with the ratings of our Senior Debt and that is calculated on the aggregate amount of commitments under the 2015 Credit Facility, whether used or unused. The initial facility fee rate was 0.15% on February 2, 2015, and was adjusted to 0.125% upon our subsequent ratings upgrade on February 2, 2015. The 2015 Credit Facility provides that we are liable for the full amount of any obligations for borrowings or letters of credit, including those of PLICO, under the 2015 Credit Facility. The maturity date of the 2015 Credit Facility is February 2, 2020. We are not aware of any non-compliance with the financial debt covenants of the Credit Facility as of February 2, 2015 or the 2015 Credit Facility as of June 30, 2015 (Successor Company). There was an outstanding balance of $545.0 million bearing interest at a rate of LIBOR plus 1.00% as of June 30, 2015 (Successor Company). As of June 30, 2015 (Successor Company), PLICO had canceled the $55.0 million Letter of Credit under the Credit Facility for the benefit of an affiliated captive reinsurance subsidiary of the Company.

Sources and Use of Cash

Our primary sources of funding are dividends from our operating subsidiaries; revenues from investments, data processing, legal, and management services rendered to subsidiaries; investment income; and external financing. These sources of cash support our general corporate needs including our common stock dividends and debt service. The states in which our insurance subsidiaries are domiciled impose certain restrictions on the insurance subsidiaries’ ability to pay us dividends. These restrictions are based in part on the prior year’s statutory income and/or surplus. Generally, these restrictions pose no short-term liquidity concerns. We plan to retain portions of the earnings of our insurance subsidiaries in those companies primarily to support their future growth.

We are a member of the FHLB of Cincinnati and FHLB of New York. FHLB advances provide an attractive funding source for short-term borrowing and for the sale of funding agreements. Membership in the FHLB requires that we purchase FHLB capital stock based on a minimum requirement and a percentage of the dollar amount of advances outstanding. Our borrowing capacity is determined by criteria established by each respective bank.

We held $65.7 million of FHLB common stock as of June 30, 2015 (Successor Company), which is included in equity securities. In addition, our obligations under the advances must be collateralized. We maintain control over any such pledged assets, including the right of substitution. As of June 30, 2015 (Successor Company), we had $671.9 million of funding agreement-related advances and accrued interest outstanding under the FHLB program.

As of June 30, 2015 (Successor Company), we reported approximately $590.9 million (fair value) of Auction Rate Securities (“ARS”) in non-Modco portfolios. As of June 30, 2015 (Successor Company), 100% of these ARS were rated Aaa/AA+. While the auction rate market has experienced liquidity constraints, we believe that based on our current liquidity position and our operating cash flows, any lack of liquidity in the ARS market will not have a material impact on our liquidity, financial condition, or cash flows. For information on how we determine the fair value of these securities refer to Note 15, Fair Value of Financial Instruments, of the consolidated condensed financial statements.

The liquidity requirements of our regulated insurance subsidiaries primarily relate to the liabilities associated with their various insurance and investment products, operating expenses, and income taxes. Liabilities arising from insurance and investment products include the payment of policyholder benefits, as well as cash payments in connection with policy surrenders and withdrawals, policy loans, and obligations to redeem funding agreements.

Our insurance subsidiaries maintain investment strategies intended to provide adequate funds to pay benefits and expected surrenders, withdrawals, loans, and redemption obligations without forced sales of investments. In addition, our insurance subsidiaries hold highly liquid, high-quality short-term investment securities and other liquid investment grade fixed maturity securities to fund our expected operating expenses, surrenders, and withdrawals. As of June 30, 2015 (Successor Company), our total cash and invested assets were $45.9 billion. The life insurance

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subsidiaries were committed as of June 30, 2015 (Successor Company), to fund mortgage loans in the amount of $826.3 million.

Our positive cash flows from operations are used to fund an investment portfolio that provides for future benefit payments. We employ a formal asset/liability program to manage the cash flows of our investment portfolio relative to our long-term benefit obligations. Our insurance subsidiaries held approximately $601.3 million in cash and short-term investments as of June 30, 2015 (Successor Company), and we held approximately $55.7 million in cash available for general corporate purposes.

The following chart includes the cash flows provided by or used in operating, investing, and financing activities for the following periods:

	Successor			Predecessor
	Company			Company
	For The Six			January 1, 2015			For The Six
	Months Ended			to			Months Ended
	June 30, 2015			January 31, 2015			June 30, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Net cash provided by operating activities	$	126,348		$	191,223		$	423,490
Net cash (used in) provided by investing activities	(640,272		)	22,994			(513,536		)
Net cash provided by (used in) financing activities	619,990			(130,918		)	(15,408		)
Total	$	106,066		$	83,299		$	(105,454	)

For The Period of February 1, 2015 to June 30, 2015 (Successor Company) and For The Period of January 1, 2015 to January 31, 2015 (Predecessor Company)

Net cash provided by operating activities - Cash flows from operating activities are affected by the timing of premiums received, fees received, investment income, and expenses paid. Principal sources of cash include sales of our products and services. We typically generate positive cash flows from operating activities, as premiums and deposits collected from our insurance and investment products exceed benefit payments and redemptions, and we invest the excess. Accordingly, in analyzing our cash flows we focus on the change in the amount of cash available and used in investing activities.

Net cash (used in) provided by investing activities - Changes in cash from investing activities primarily related to the activity in our investment portfolio.

Net cash provided by (used in) financing activities - Changes in cash from financing activities included $552.2 million of inflows from repurchase program borrowings for the period of February 1, 2015 to June 30, 2015 (Successor Company) and $3.0 million outflows of investment product and universal life net activity. Net activity related to credit facility resulted in inflows of $35.6 million for the period of February 1, 2015 to June 30, 2015 (Successor Company). Net issuance of non-recourse funding obligations was $35.0 million during the period of February 1, 2015 to June 30, 2015 (Successor Company).

Changes in cash from financing activities included $70.9 million outflows of investment product and universal life net activity for the period of January 1, 2015 to January 31, 2015 (Predecessor Company). Net activity related to credit facility resulted in $60.0 million of outflows for the period of January 1, 2015 to January 31, 2015 (Predecessor Company).

Capital Resources

Our primary sources of capital are through retained income from our operating subsidiaries, capital infusions from our parent, Dai-ichi Life, as well as our ability to access debt financing markets. Additionally, we have access to the Credit Facility discussed above.

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Captive Reinsurance Companies

Our life insurance subsidiaries are subject to a regulation entitled “Valuation of Life Insurance Policies Model Regulation,” commonly known as “Regulation XXX,” and a supporting guideline entitled “The Application of the Valuation of Life Insurance Policies Model Regulation,” commonly known as “Guideline AXXX.” The regulation and supporting guideline require insurers to establish statutory reserves for term and universal life insurance policies with long-term premium guarantees that are consistent with the statutory reserves required for other individual life insurance policies with similar guarantees. Many market participants believe that these levels of reserves are non-economic. We use captive reinsurance companies to implement reinsurance and capital management actions to satisfy these reserve requirements by financing the non-economic reserves either through the issuance of non-recourse funding obligations by the captives or obtaining Letters of Credit from third-party financial institutions. For more information regarding our use of captives and their impact on our financial statements, please refer to Note 9, Debt and Other Obligations.

Our captive reinsurance companies assume business from affiliates only. Our captives are capitalized to a level we believe is sufficient to support the contractual risks and other general obligations of the respective captive entity. All of our captive reinsurance companies are wholly owned subsidiaries and are located domestically. The captive insurance companies are subject to regulations in the state of domicile.

The National Association of Insurance Commissioners (“NAIC”), through various committees, subgroups and dedicated task forces, is reviewing the use of captives and special purpose vehicles used to transfer insurance risk in relation to existing state laws and regulations, and several committees have adopted or exposed for comment white papers and reports that, if or when implemented, could impose additional requirements on the use of captives and other reinsurers. The Financial Condition (E) Committee of the NAIC recently established a Variable Annuity Issues Working Group to examine company use of variable annuity captives.

The Principles Based Reserving Implementation (EX) Task Force of the NAIC, charged with analysis of the adoption of a principles-based reserving methodology, adopted the “conceptual framework” contained in a report issued by Rector & Associates, Inc., dated June 4, 2014 (as modified or supplemented, the “Rector Report”), that contains numerous recommendations pertaining to the regulation and use of certain captive reinsurers. Certain high-level recommendations have been adopted and assigned to various NAIC working groups, which working groups are in various stages of discussions regarding recommendations. One recommendation of the Rector Report has been adopted as Actuarial Guideline XXXXVIII (“AG48”). AG48 sets more restrictive standards on the permitted collateral utilized to back reserves of a captive. Other recommendations in the Rector Report are subject to ongoing comment and revision. It is unclear at this time to what extent the recommendations in the Rector Report, or additional or revised recommendations relating to captive transactions or reinsurance transactions in general, will be adopted by the NAIC. If the recommendations proposed in the Rector Report are implemented, it will likely be difficult for the Company to establish new captive financing arrangements on a basis consistent with past practices. As a result of AG48 and the Rector Report, the implementation of new captive structures in the future may be less capital efficient, may lead to lower product returns and/or increased product pricing or result in reduced sales of certain products. Additionally, in some circumstances AG48 and the implementation of the recommendations in the Rector Report could impact the Company’s ability to engage in certain reinsurance transactions with non-affiliates.

We also use a captive reinsurance company to reinsure risks associated with GMWB and GMDB riders which helps us to manage those risks on an economic basis. In an effort to mitigate the equity market risks relative to our RBC ratio, in the fourth quarter of 2012, we established an indirect wholly owned insurance subsidiary, Shades Creek Captive Insurance Company (“Shades Creek”), to which PLICO has reinsured GMWB and GMDB riders related to its VA contracts. The purpose of Shades Creek is to reduce the volatility in RBC due to non-economic variables included within the RBC calculation.

During 2012, we entered into an intercompany capital support agreement with Shades Creek. The agreement provides through a guarantee that we will contribute assets or purchase surplus notes (or cause an affiliate or third party to contribute assets or purchase surplus notes) in amounts necessary for Shades Creek’s regulatory capital levels to equal or exceed minimum thresholds as defined by the agreement. Under this support agreement, PLICO issued a $55 million Letter of Credit on December 31, 2014 (Predecessor Company). As of June 30, 2015 (Successor Company), this Letter of Credit was no longer issued and outstanding. On June 15, 2015, we made a cash contribution to Shades Creek of $85 million to satisfy obligations under this support agreement. The maximum potential future

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payment amount which could be required under the capital support agreement will be dependent on numerous factors, including the performance of equity markets, the level of interest rates, performance of associated hedges, and related policyholder behavior.

A life insurance company’s statutory capital is computed according to rules prescribed by the NAIC, as modified by state law. Generally speaking, other states in which a company does business defer to the interpretation of the domiciliary state with respect to NAIC rules, unless inconsistent with the other state’s regulations. Statutory accounting rules are different from GAAP and are intended to reflect a more conservative view, for example, requiring immediate expensing of policy acquisition costs. The NAIC’s risk-based capital requirements require insurance companies to calculate and report information under a risk-based capital formula. The achievement of long-term growth will require growth in the statutory capital of our insurance subsidiaries. The subsidiaries may secure additional statutory capital through various sources, such as retained statutory earnings or our equity contributions. In general, dividends up to specified levels are considered ordinary and may be paid thirty days after written notice to the insurance commissioner of the state of domicile unless such commissioner objects to the dividend prior to the expiration of such period. Dividends in larger amounts are considered extraordinary and are subject to affirmative prior approval by such commissioner. The maximum amount that would qualify as an ordinary dividend to us from our insurance subsidiaries in 2015 is approximately to be $588.2 million.

State insurance regulators and the NAIC have adopted risk-based capital (“RBC”) requirements for life insurance companies to evaluate the adequacy of statutory capital and surplus in relation to investment and insurance risks. The requirements provide a means of measuring the minimum amount of statutory surplus appropriate for an insurance company to support its overall business operations based on its size and risk profile. A company’s risk-based statutory surplus is calculated by applying factors and performing calculations relating to various asset, premium, claim, expense, and reserve items. Regulators can then measure the adequacy of a company’s statutory surplus by comparing it to RBC. We manage our capital consumption by using the ratio of our total adjusted capital, as defined by the insurance regulators, to our company action level RBC (known as the RBC ratio), also as defined by insurance regulators.

Statutory reserves established for VA contracts are sensitive to changes in the equity markets and are affected by the level of account values relative to the level of any guarantees and product design. As a result, the relationship between reserve changes and equity market performance may be non-linear during any given reporting period. Market conditions greatly influence the capital required due to their impact on the valuation of reserves and derivative investments mitigating the risk in these reserves. Risk mitigation activities may result in material and sometimes counterintuitive impacts on statutory surplus and RBC ratio. Notably, as changes in these market and non-market factors occur, both our potential obligation and the related statutory reserves and/or required capital can vary at a non-linear rate.

Our statutory surplus is impacted by credit spreads as a result of accounting for the assets and liabilities on our fixed MVA annuities. Statutory separate account assets supporting the fixed MVA annuities are recorded at fair value. In determining the statutory reserve for the fixed MVA annuities, we are required to use current crediting rates based on U.S. Treasuries. In many capital market scenarios, current crediting rates based on U.S. Treasuries are highly correlated with market rates implicit in the fair value of statutory separate account assets. As a result, the change in the statutory reserve from period to period will likely substantially offset the change in the fair value of the statutory separate account assets. However, in periods of volatile credit markets, actual credit spreads on investment assets may increase or decrease sharply for certain sub-sectors of the overall credit market, resulting in statutory separate account asset market value gains or losses. As actual credit spreads are not fully reflected in current crediting rates based on U.S. Treasuries, the calculation of statutory reserves will not substantially offset the change in fair value of the statutory separate account assets resulting in a change in statutory surplus.

We cede material amounts of insurance and transfer related assets to other insurance companies through reinsurance. However, notwithstanding the transfer of related assets, we remain liable with respect to ceded insurance should any reinsurer fail to meet the obligations that it assumed. We evaluate the financial condition of our reinsurers and monitor the associated concentration of credit risk. For the three months ended June 30, 2015 (Successor Company) and the period of February 1, 2015 to June 30, 2015 (Successor Company), we ceded premiums to third party reinsurers amounting to $345.2 million and $486.6 million, respectively. For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), we ceded premiums to third party reinsurers amounting to $90.0 million. In addition, we had

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receivables from reinsurers amounting to $5.6 billion as of June 30, 2015 (Successor Company). We review reinsurance receivable amounts for collectability and establish bad debt reserves if deemed appropriate.

Ratings

Various Nationally Recognized Statistical Rating Organizations (“rating organizations”) review the financial performance and condition of insurers, including our insurance subsidiaries, and publish their financial strength ratings as indicators of an insurer’s ability to meet policyholder and contract holder obligations. These ratings are important to maintaining public confidence in an insurer’s products, its ability to market its products and its competitive position. The following table summarizes the current financial strength ratings of our significant member companies from the major independent rating organizations:

			Standard &
Ratings	A.M. Best	Fitch	Poor’s	Moody’s
Insurance company financial strength rating:
Protective Life Insurance Company	A+	A	AA-	A2
West Coast Life Insurance Company	A+	A	AA-	A2
Protective Life and Annuity Insurance Company	A+	A	AA-	—
Lyndon Property Insurance Company	A-	—	—	—
MONY Life Insurance Company	A+	A	A+	A2

Our ratings are subject to review and change by the rating organizations at any time and without notice. A downgrade or other negative action by a ratings organization with respect to the financial strength ratings of our insurance subsidiaries could adversely affect sales, relationships with distributors, the level of policy surrenders and withdrawals, competitive position in the marketplace, and the cost or availability of reinsurance. The rating agencies may take various actions, positive or negative, with respect to our debt and financial strength ratings, including as a result of our status as a subsidiary of Dai-ichi Life.

On April 28, 2015, Fitch announced a one-notch downgrade of the insurance financial strength ratings of PLICO, West Coast Life Insurance Company, Protective Life and Annuity Insurance Company and MONY Life Insurance Company to A from A+ following the downgrade of Japan’s Long-Term Local Currency Issuer Default Rating (IDR) to A from A+.  Fitch stated that such life insurance companies cannot be rated above the sovereign currency rating applicable to their ultimate parent company, Dai-ichi Life, based in Japan. Our credit rating was not affected by these actions. The ratings downgrades announced by Fitch did not trigger any requirements for us or our subsidiaries to post collateral or otherwise negatively impact current obligations.

Rating organizations also publish credit ratings for the issuers of debt securities, including the Company. Credit ratings are indicators of a debt issuer’s ability to meet the terms of debt obligations in a timely manner. These ratings are important in the debt issuer’s overall ability to access credit markets and other types of liquidity. Ratings are not recommendations to buy our securities or products. A downgrade or other negative action by a ratings organization with respect to our credit rating could limit our access to capital markets, increase the cost of issuing debt, and a downgrade of sufficient magnitude, combined with other negative factors, could require us to post collateral.

LIABILITIES

Many of our products contain surrender charges and other features that are designed to reward persistency and penalize the early withdrawal of funds. Certain stable value and annuity contracts have market-value adjustments that protect us against investment losses if interest rates are higher at the time of surrender than at the time of issue.

As of June 30, 2015 (Successor Company), we had policy liabilities and accruals of approximately $30.4 billion. Our interest-sensitive life insurance policies have a weighted average minimum credited interest rate of approximately 3.49%.

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Contractual Obligations

We enter into various obligations to third parties in the ordinary course of our operations. However, we do not believe that our cash flow requirements can be assessed solely based upon an analysis of these obligations. The most significant factors affecting our future cash flows are our ability to earn and collect cash from our customers, and the cash flows arising from our investment program. Future cash outflows, whether they are contractual obligations or not, will also vary based upon our future needs. Although some outflows are fixed, others depend on future events. Examples of fixed obligations include our obligations to pay principal and interest on fixed-rate borrowings. Examples of obligations that will vary include obligations to pay interest on variable-rate borrowings and insurance liabilities that depend on future interest rates, market performance, or surrender provisions. Many of our obligations are linked to cash-generating contracts. In addition, our operations involve significant expenditures that are not based upon contractual obligations. These include expenditures for income taxes and payroll.

As of June 30, 2015 (Successor Company), we carried a $201.2 million liability for uncertain tax positions, including interest on unrecognized tax benefits. These amounts are not included in the long-term contractual obligations table because of the difficulty in making reasonably reliable estimates of the occurrence or timing of cash settlements with the respective taxing authorities.

The table below sets forth future maturities of our contractual obligations:

			Payments due by period
			Less than						More than
	Total		1 year		1-3 years		3-5 years		5 years
	(Dollars In Thousands)
Debt(1)	$	2,175,039	$	70,935	$	826,256	$	488,804	$	789,044
Non-recourse funding obligations(2)	2,050,011		33,376		78,433		91,546		1,846,656
Subordinated debt securities(3)	1,164,910		26,969		53,938		53,938		1,030,065
Stable value products(4)	1,894,701		629,671		972,373		237,092		55,565
Operating leases(5)	28,705		5,770		6,946		5,478		10,511
Home office lease(6)	79,367		1,253		2,500		75,614		—
Mortgage loan and investment commitments	1,069,267		1,069,267		—		—		—
Repurchase program borrowings(7)	602,239		602,239		—		—		—
Policyholder obligations(8)	41,227,703		1,510,873		3,062,462		3,384,324		33,270,044
Total(9)	$	50,291,942	$	3,950,353	$	5,002,908	$	4,336,796	$	37,001,885

(1)Debt includes all principal amounts owed on note agreements and expected interest payments due over the term of the notes.

(2)Non-recourse funding obligations include all undiscounted principal amounts owed and expected future interest payments due over the term of the notes. Of the total undiscounted cash flows, $1.8 billion relates to the Golden Gate V transaction. These cash outflows are matched and predominantly offset by the cash inflows Golden Gate V receives from notes issued by a nonconsolidated variable interest entity. The remaining amounts are associated with the Golden Gate II notes held by third parties as well as certain obligations assumed with the acquisition of MONY Life Insurance Company.

(3)Subordinated debt securities includes all principal amounts and interest payments due over the term of the obligations.

(4)Anticipated stable value products cash flows including interest.

(5)Includes all lease payments required under operating lease agreements.

(6)The lease payments shown assume we exercise our option to purchase the building at the end of the lease term. Additionally, the payments due by the periods above were computed based on the terms of the renegotiated lease agreement, which was entered in December 2013.

(7)Represents secured borrowings as part of our repurchase program as well as related interest.

(8)Estimated contractual policyholder obligations are based on mortality, morbidity, and lapse assumptions comparable to our historical experience, modified for recent observed trends. These obligations are based on current balance sheet values and include expected interest crediting, but do not incorporate an expectation of future market growth, or future deposits. Due to the significance of the assumptions used, the amounts presented could materially differ from actual results. As variable separate account obligations are legally insulated from general account obligations, the variable separate account obligations will be fully funded by cash flows from variable separate account assets. We expect to fully fund the general account obligations from cash flows from general account investments.

(9)Excluded from this table are certain pension obligations.

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FAIR VALUE OF FINANCIAL INSTRUMENTS

FASB guidance defines fair value for GAAP and establishes a framework for measuring fair value as well as a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. The term “fair value” in this document is defined in accordance with GAAP. The standard describes three levels of inputs that may be used to measure fair value. For more information, see Note 15, Fair Value of Financial Instruments.

OFF-BALANCE SHEET ARRANGEMENTS

We have entered into indemnity agreements with each of our directors as well as operating leases that do not result in an obligation being recorded on the balance sheet. Refer to Note 10, Commitments and Contingencies, of the consolidated financial statements for more information on our indemnity agreements.

MARKET RISK EXPOSURES

Our financial position and earnings are subject to various market risks including changes in interest rates, the yield curve, spreads between risk-adjusted and risk-free interest rates, foreign currency rates, used vehicle prices, and equity price risks and issuer defaults. We analyze and manage the risks arising from market exposures of financial instruments, as well as other risks, through an integrated asset/liability management process. Our asset/liability management programs and procedures involve the monitoring of asset and liability durations for various product lines; cash flow testing under various interest rate scenarios; and the continuous rebalancing of assets and liabilities with respect to yield, credit and market risk, and cash flow characteristics. These programs also incorporate the use of derivative financial instruments primarily to reduce our exposure to interest rate risk, inflation risk, currency exchange risk, volatility risk, and equity market risk. See Note 16, Derivative Financial Instruments, to the consolidated condensed financial statements included in this report for additional information on our financial instruments.

The primary focus of our asset/liability program is the management of interest rate risk within the insurance operations. This includes monitoring the duration of both investments and insurance liabilities to maintain an appropriate balance between risk and profitability for each product category, and for us as a whole. It is our policy to maintain asset and liability durations within one year of one another, although, from time to time, a broader interval may be allowed.

We are exposed to credit risk within our investment portfolio and through derivative counterparties. Credit risk relates to the uncertainty of an obligor’s continued ability to make timely payments in accordance with the contractual terms of the instrument or contract. We manage credit risk through established investment policies which attempt to address quality of obligors and counterparties, credit concentration limits, diversification requirements, and acceptable risk levels under expected and stressed scenarios. Derivative counterparty credit risk is measured as the amount owed to us, net of collateral held, based upon current market conditions. In addition, we periodically assess exposure related to potential payment obligations between us and our counterparties. We minimize the credit risk in derivative financial instruments by entering into transactions with high quality counterparties, (A-rated or higher at the time we enter into the contract), and we maintain credit support annexes with certain of those counterparties.

We utilize a risk management strategy that includes the use of derivative financial instruments. Derivative instruments expose us to credit market and basis risk. Such instruments can change materially in value from period- to-period. We minimize our credit risk by entering into transactions with highly rated counterparties. We manage the market and basis risks by establishing and monitoring limits as to the types and degrees of risk that may be undertaken. We monitor our use of derivatives in connection with our overall asset/liability management programs and procedures. In addition, all derivative programs are monitored by our risk management department.

Derivative instruments that are used as part of our interest rate risk management strategy include interest rate swaps, interest rate futures, interest rate caps, and interest rate options. Our inflation risk management strategy involves the use of swaps that require us to pay a fixed rate and receive a floating rate that is based on changes in the Consumer Price Index (“CPI”).

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We may use the following types of derivative contracts to mitigate our exposure to certain guaranteed benefits related to variable annuity, fixed indexed annuity, and indexed universal life contracts:

·Foreign Currency Futures

·Variance Swaps

·Interest Rate Futures

·Equity Options

·Equity Futures

·Credit Derivatives

·Interest Rate Swaps

·Interest Rate Swaptions

·Volatility Futures

·Volatility Options

·Total Return Swaps

We believe that our asset/liability management programs and procedures and certain product features provide protection against the effects of changes in interest rates under various scenarios. Additionally, we believe our asset/liability management programs and procedures provide sufficient liquidity to enable us to fulfill our obligation to pay benefits under our various insurance and deposit contracts. However, our asset/liability management programs and procedures incorporate assumptions about the relationship between short-term and long-term interest rates (i.e., the slope of the yield curve), relationships between risk-adjusted and risk-free interest rates, market liquidity, spread movements, implied volatility, policyholder behavior, and other factors, and the effectiveness of our asset/liability management programs and procedures may be negatively affected whenever actual results differ from those assumptions.

In the ordinary course of our commercial mortgage lending operations, we may commit to provide a mortgage loan before the property to be mortgaged has been built or acquired. The mortgage loan commitment is a contractual obligation to fund a mortgage loan when called upon by the borrower. The commitment is not recognized in our financial statements until the commitment is actually funded. The mortgage loan commitment contains terms, including the rate of interest, which may be different than prevailing interest rates. As of June 30, 2015 (Successor Company), we had outstanding mortgage loan commitments of $826.3 million at an average rate of 4.4%.

Impact of continued low interest rate environment

Significant changes in interest rates expose us to the risk of not realizing anticipated spreads between the interest rate earned on investments and the interest rate credited to in-force policies and contracts. In addition, certain of our insurance and investment products guarantee a minimum guaranteed interest rate (“MGIR”). In periods of prolonged low interest rates, the interest spread earned may be negatively impacted to the extent our ability to reduce policyholder crediting rates is limited by the guaranteed minimum credited interest rates. Additionally, those policies without account values may exhibit lower profitability in periods of prolonged low interest rates due to reduced investment income.

The table below presents account values by range of current minimum guaranteed interest rates and current crediting rates for our universal life and deferred fixed annuity products as of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company):

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Credited Rate Summary

As of June 30, 2015 (Successor Company)

				1-50 bps			More than
Minimum Guaranteed Interest Rate	At			above			50 bps
Account Value	MGIR			MGIR			above MGIR			Total
	(Dollars In Millions)
Universal Life Insurance
>2% - 3%	$	191		$	994		$	2,020		$	3,205
>3% - 4%	3,657			1,624			24			5,305
>4% - 5%	2,009			14			—			2,023
>5% - 6%	219			—			—			219
Subtotal	6,076			2,632			2,044			10,752
Fixed Annuities
1%	$	651		$	172		$	169		$	992
>1% - 2%	580			513			150			1,243
>2% - 3%	1,934			477			40			2,451
>3% - 4%	287			—			—			287
>4% - 5%	289			—			—			289
>5% - 6%	3			—			—			3
Subtotal	3,744			1,162			359			5,265
Total	$	9,820		$	3,794		$	2,403		$	16,017
Percentage of Total	61		%	24		%	15		%	100		%

Credited Rate Summary

As of December 31, 2014 (Predecessor Company)

				1-50 bps			More than
Minimum Guaranteed Interest Rate	At			above			50 bps
Account Value	MGIR			MGIR			above MGIR			Total
	(Dollars In Millions)
Universal Life Insurance
>2% - 3%	$	188		$	958		$	2,018		$	3,164
>3% - 4%	3,526			1,670			138			5,334
>4% - 5%	2,035			15			—			2,050
>5% - 6%	224			—			—			224
Subtotal	5,973			2,643			2,156			10,772
Fixed Annuities
1%	$	602		$	179		$	239		$	1,020
>1% - 2%	597			516			197			1,310
>2% - 3%	2,005			368			203			2,576
>3% - 4%	297			—			—			297
>4% - 5%	295			—			—			295
>5% - 6%	3			—			—			3
Subtotal	3,799			1,063			639			5,501
Total	$	9,772		$	3,706		$	2,795		$	16,273
Percentage of Total	60		%	23		%	17		%	100		%

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We are active in mitigating the impact of a continued low interest rate environment through product design, as well as adjusting crediting rates on current in-force policies and contracts. We also manage interest rate and reinvestment risks through our asset/liability management process. Our asset/liability management programs and procedures involve the monitoring of asset and liability durations; cash flow testing under various interest rate scenarios; and the regular rebalancing of assets and liabilities with respect to yield, credit and market risk, and cash flow characteristics. These programs also incorporate the use of derivative financial instruments primarily to reduce our exposure to interest rate risk, inflation risk, currency exchange risk, volatility risk, and equity market risk.

IMPACT OF INFLATION

Inflation increases the need for life insurance. Many policyholders who once had adequate insurance programs may increase their life insurance coverage to provide the same relative financial benefit and protection. Higher interest rates may result in higher sales of certain of our investment products.

The higher interest rates that have traditionally accompanied inflation could also affect our operations. Policy loans increase as policy loan interest rates become relatively more attractive. As interest rates increase, disintermediation of stable value and annuity account balances and individual life policy cash values may increase. The market value of our fixed-rate, long-term investments may decrease, we may be unable to implement fully the interest rate reset and call provisions of our mortgage loans, and our ability to make attractive mortgage loans, including participating mortgage loans, may decrease. In addition, participating mortgage loan income may decrease. The difference between the interest rate earned on investments and the interest rate credited to life insurance and investment products may also be adversely affected by rising interest rates. During the periods covered by this report, we believe inflation has not had a material impact on our business.

RECENTLY ISSUED ACCOUNTING STANDARDS

See Note 2, Summary of Significant Accounting Policies, to the consolidated condensed financial statements for information regarding recently issued accounting standards.

Item 3.       Quantitative and Qualitative Disclosures about Market Risk

See Part I, Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, “Liquidity and Capital Resources” and Part II, Item 1A, Risk Factors, of this report for market risk disclosures.

Item 4.Controls and Procedures

(a)Disclosure controls and procedures

In order to ensure that the information the Company must disclose in its filings with the Securities and Exchange Commission is recorded, processed, summarized, and reported on a timely basis, the Company’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), except as otherwise noted below. Based on their evaluation as of the end of the period covered by this Form 10-Q, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective. It should be noted that any system of controls, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Further, the design of any control system is based in part upon certain judgments, including the costs and benefits of controls and the likelihood of future events. Because of these and other inherent limitations of control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within the Company have been detected.

(b)Changes in internal control over financial reporting

During the period from February 1, 2015 through June 30, 2015 (Successor Company), the Company updated its internal controls over financial reporting to ensure the accuracy of information disclosed as a result of the Merger, including but not limited to internal controls over reporting of goodwill and intangible assets. Other than the updates

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mentioned, there have been no changes in the Company’s internal control over financial reporting during the period of January 1, 2015 to January 31, 2015 (Predecessor Company) or the period of February 1, 2015 to June 30, 2015 (Successor Company), that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. The Company’s internal controls exist within a dynamic environment and the Company continually strives to improve its internal controls and procedures to enhance the quality of its financial reporting.

PART II

Item 1.  Legal Proceedings

After the entry into the Merger Agreement on June 3, 2014, four lawsuits were filed against the Company, our then current directors, Dai-ichi Life and DL Investment (Delaware), Inc. on behalf of alleged Company shareowners. On June 11, 2014, a putative class action lawsuit styled Edelman, et al. v. Protective Life Corporation, et al., Civil Action No. 01-CV-2014-902474.00, was filed in the Circuit Court of Jefferson County, Alabama. On July 30, 2014, the plaintiff in Edelman filed an amended complaint. Three putative class action lawsuits were filed in the Court of Chancery of the State of Delaware, Martin, et al. v. Protective Life Corporation, et al., Civil Action No. 9794-CB, filed June 19, 2014, Leyendecker, et al. v. Protective Life Corporation, et al., Civil Action No. 9931-CB, filed July 22, 2014 and Hilburn, et al. v. Protective Life Corporation, et al., Civil Action No. 9937-CB, filed July 23, 2014. The Delaware Court of Chancery consolidated the Martin, Leyendecker, and Hilburn actions under the caption In re Protective Life Corp. Stockholders Litigation, Consolidated Civil Action No. 9794-CB, designated the Hilburn complaint as the operative consolidated complaint (the “Delaware Action”) and appointed Charlotte Martin, Samuel J. Leyendecker, Jr., and Deborah J. Hilburn to serve as co-lead plaintiffs. These lawsuits alleged that our Board of Directors breached its fiduciary duties to our shareowners, that the Merger involved an unfair price, an inadequate sales process, and unreasonable deal protection devices that purportedly precluded competing offers, and that the preliminary proxy statement filed with the SEC on July 10, 2014 failed to disclose purportedly material information. The complaints also alleged that the Company, Dai-ichi Life and DL Investment (Delaware), Inc. aided and abetted those alleged breaches of fiduciary duties. The complaints sought injunctive relief, including enjoining or rescinding the Merger, and attorneys’ and other fees and costs, in addition to other relief. The Delaware Action also sought an award of unspecified damages.

With respect to the Edelman lawsuit, on September 5, 2014, the court held a hearing to address motions to dismiss the lawsuit filed on behalf of the Company, the members of the Company’s Board, and DL Investment (Delaware), Inc. On September 19, 2014, the court granted those motions and dismissed the Edelman lawsuit in its entirety and with prejudice, pending a possible appeal by the plaintiff. With respect to the Delaware Action, on September 24, 2014, the Company, each of the members of the Company’s Board, Dai-ichi Life, and DL Investment (Delaware), Inc. entered into a Memorandum of Understanding (the “MOU”) with the plaintiffs in that case, which set forth the parties’ agreement in principle for a settlement of the Delaware Action. As set forth in the MOU, the Company, the members of the Company’s Board, Dai-ichi Life, and DL Investment (Delaware), Inc. agreed to the settlement solely to eliminate the burden, expense, distraction, and uncertainties inherent in further litigation, and without admitting any liability or wrongdoing. The MOU contemplated that the parties would seek to enter into a stipulation of settlement providing for the certification of a mandatory non opt-out class, for settlement purposes only, to include any and all record and beneficial owners of shares (excluding the members of the Company’s Board and their immediate family members, any entity in which any member of the Company’s Board has a controlling interest, and any successors in interest thereto) that held shares at any time during the period beginning on June 3, 2014, through the date of consummation or termination of the Merger, including any and all of their respective successors in interest, successors, predecessors in interest, representatives, trustees, executors, administrators, heirs, assigns, or transferees, immediate and remote, and any person or entity acting for or on behalf of, or claiming under, any of them, together with their predecessors, successors and assigns, and a global release of claims relating to the Merger as set forth in the MOU. As part of the settlement, the Company agreed to make certain additional disclosures related to the Merger which are set forth in the Company’s Form 8-K filed on September 25, 2014 and which supplement the information contained in the Company’s definitive proxy statement filed with the SEC on August 25, 2014, as amended on August 27, 2014. Nothing in the Form 8-K or stipulation of settlement shall be deemed an admission of the legal necessity or materiality of any of the disclosures set forth in the Form 8-K. The stipulation of settlement and release of all claims in the Delaware Action was approved by the Court of Chancery of the State of Delaware on June 16, 2015. The terms of the settlement had no effect on the consideration received by Company stockholders in connection with the completion of

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the Merger, and the amount. of attorneys’ fees and expenses awarded to the plaintiffs’ counsel did not have a material impact upon the Company.

For additional information regarding legal proceedings see Item 1A, Risk Factors and Note 10, Commitments and Contingencies of the Notes to the Consolidated Condensed Financial Statements, each included herein.

Item 1A.  Risk Factors

The operating results of companies in the insurance industry have historically been subject to significant fluctuations. The factors which could affect the Company’s future results include, but are not limited to, general economic conditions and known trends and uncertainties. In addition to other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A, Risk Factors in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (Successor Company), which could materially affect the Company’s business, financial condition, or future results of operations.

Industry Related Risks

The business of the Company is highly regulated and is subject to routine audits, examinations and actions by regulators, law enforcement agencies and self-regulatory organizations.

The Company is subject to government regulation in each of the states in which it conducts business. In many instances, the regulatory models emanate from the National Association of Insurance Commissioners (“NAIC”). Such regulation is vested in state agencies having broad administrative and in some instances discretionary power dealing with many aspects of the Company’s business, which may include, among other things, premium rates and increases thereto, underwriting practices, reserve requirements, marketing practices, advertising, privacy, policy forms, reinsurance reserve requirements, insurer use of captive reinsurance companies, acquisitions, mergers, capital adequacy, claims practices and the remittance of unclaimed property. In addition, some state insurance departments may enact rules or regulations with extra-territorial application, effectively extending their jurisdiction to areas such as permitted insurance company investments that are normally the province of an insurance company’s domiciliary state regulator.

At any given time, a number of financial, market conduct, or other examinations or audits of the Company’s subsidiaries may be ongoing. It is possible that any examination or audit may result in payments of fines and penalties, payments to customers, or both, as well as changes in systems or procedures, any of which could have a material adverse effect on the Company’s financial condition or results of operations. The Company’s insurance subsidiaries are required to obtain state regulatory approval for rate increases for certain health insurance products. The Company’s profits may be adversely affected if the requested rate increases are not approved in full by regulators in a timely fashion.

State insurance regulators and the NAIC regularly re-examine existing laws and regulations applicable to insurance companies and their products. Changes in these laws and regulations, or in interpretations thereof, are often made for the benefit of the consumer and may lead to additional expense for the insurer and, thus, could have a material adverse effect on the Company’s financial condition and results of operations.

The NAIC and the Company’s state regulators may be influenced by the initiatives of international regulatory bodies, and those initiatives may not translate readily into the legal system under which U.S. insurers must operate. There is increasing pressure to conform to international standards due to the globalization of the business of insurance and the most recent financial crisis.

In addition to developments at the NAIC and in the United States, the Financial Stability Board (“FSB”), consisting of representatives of national financial authorities of the G20 nations, and the G20 have issued a series of proposals intended to produce significant changes in how financial companies, particularly companies that are members of large and complex financial groups, should be regulated.

The International Association of Insurance Supervisors (“IAIS”), at the direction of the FSB, has published a methodology for identifying “global systemically important insurers” (“G-SIIs”) and high level policy measures that

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will apply to G-SIIs. The FSB, working with national authorities and the IAIS, has designated nine insurance groups as G-SIIs. The IAIS is working on the policy measures which include higher capital requirements and enhanced supervision. Although neither the Company nor Dai-ichi Life has been designated a G-SII, the list of designated insurers will be updated annually by the FSB. It is possible that the greater size and reach of the combined group as a result of the Company becoming a subsidiary of Dai-ichi Life, or a change in the methodologies or their application, could lead to the combined group’s designation as a G-SII.

The IAIS is also in the process of developing a common framework for the supervision of internationally active insurance groups (“IAIGs”), which is targeted to be implemented in 2019. Under the proposed framework, insurance groups deemed to be IAIGs may be required by their regulators to comply with new global capital requirements, which may exceed the sum of state or other local capital requirements. In addition, the IAIS is developing a model framework for the supervision of IAIGs that contemplates “group wide supervision” across national boundaries, which requires each IAIG to conduct its own risk and solvency assessment to monitor and manage its overall solvency. It is possible that, as a result of the Merger, the combined group may be deemed an IAIG, in which case it may be subject to supervision and capital requirements beyond those applicable to any competitors who are not designated as an IAIG.

While it is not yet known how or if these actions will impact the Company, such regulation could result in increased costs of compliance, increased disclosure, less flexibility in capital management and more burdensome regulation and capital requirements for specific lines of business, and could impact the Company and its reserve and capital requirements, financial condition or results of operations.

Although some NAIC pronouncements, particularly as they affect accounting, reserving and risk-based capital issues, may take effect automatically without affirmative action taken by the states, the NAIC is not a governmental entity and its processes and procedures do not comport with those to which governmental entities typically adhere. Therefore, it is possible that actions could be taken by the NAIC that become effective without the procedural safeguards that would be present if governmental action was required. In addition, with respect to some financial regulations and guidelines, states sometimes defer to the interpretation of the insurance department of a non-domiciliary state. Neither the action of the domiciliary state nor the action of the NAIC is binding on a non-domiciliary state. Accordingly, a state could choose to follow a different interpretation. The Company is also subject to the risk that compliance with any particular regulator’s interpretation of a legal, accounting or actuarial issue may result in non-compliance with another regulator’s interpretation of the same issue, particularly when compliance is judged in hindsight. There is an additional risk that any particular regulator’s interpretation of a legal, accounting or actuarial issue may change over time to the Company’s detriment, or that changes to the overall legal or market environment may cause the Company to change its practices in ways that may, in some cases, limit its growth or profitability. Statutes, regulations, interpretations, and instructions may be applied with retroactive impact, particularly in areas such as accounting, reserve and risk-based capital requirements. Also, regulatory actions with prospective impact can potentially have a significant impact on currently sold products.

The NAIC has announced more focused inquiries on certain matters that could have an impact on the Company’s financial condition and results of operations. Such inquiries concern, for example, examination of statutory accounting disclosures for separate accounts, insurer use of captive reinsurance companies, certain aspects of insurance holding company reporting and disclosure, reserving for universal life products with secondary guarantees, reinsurance, and risk-based capital calculations. In addition, the NAIC continues to consider various initiatives to change and modernize its financial and solvency requirements and regulations. It is considering changing to, or has considered and passed, a principles-based reserving method for life insurance and annuity reserves, changes to the accounting and risk-based capital regulations, changes to the governance practices of insurers, and other items. Some of these proposed changes, including implementing a principles-based reserving methodology, would require the approval of state legislatures. The Company cannot provide any estimate as to what impact these more focused inquiries or proposed changes, if they occur, will have on its product mix, product profitability, reserve and capital requirements, financial condition or results of operations.

With respect to reserving requirements for universal life policies with secondary guarantees (“ULSG”), in 2012 the NAIC adopted revisions to Actuarial Guideline XXXVIII (“AG38”) addressing those requirements. Some of the regulatory participants in the AG38 revision process appeared to believe that one of the purposes of the revisions was to calculate reserves for ULSG similarly to reserves for guaranteed level term life insurance contracts with the

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same guarantee period. The effect of the revisions was to increase the level of reserves that must be held by insurers on ULSG with certain product designs that are issued on and after January 1, 2013, and to cause insurers to test the adequacy of reserves, and possibly increase the reserves, on ULSG with certain product designs that were issued before January 1, 2013. The Company developed and introduced a new ULSG product for sales in 2013. The Company cannot predict future regulatory actions that could negatively impact the Company’s ability to market this or other products. Such regulatory reactions could include, for example, withdrawal of state approvals of the product, or adoption of further changes to AG38 or other adverse action including retroactive regulatory action that could negatively impact the Company’s product. A disruption of the Company’s ability to sell financially viable life insurance products or an increase in reserves on ULSG policies issued either before or after January 1, 2013, could have a material adverse impact on the Company’s financial condition or results of operations.

The Company currently uses affiliated captive reinsurance companies in various structures to finance certain statutory reserves based on a regulation entitled “Valuation of Life Insurance Policies Model Regulation,” commonly known as “Regulation XXX,” and a supporting guideline entitled “The Application of the Valuation of Life Insurance Policies Model Regulation,” commonly known as “Guideline AXXX, which are associated with term life insurance and universal life insurance with secondary guarantees, respectively, as well as to reduce the volatility in statutory risk based capital associated with certain guaranteed minimum withdrawal and death benefit riders associated with the Company’s variable annuity products. The NAIC, through various committees, subgroups and dedicated task forces, is reviewing the use of captives and special purpose vehicles used to transfer insurance risk in relation to existing state laws and regulations, and several committees have adopted or exposed for comment white papers and reports that, if or when implemented, could impose additional requirements on the use of captives and other reinsurers (including traditional reinsurers) (the “Affected Business”). The Financial Condition (E) Committee of the NAIC recently established a Variable Annuity Issues Working Group to examine company use of variable annuity captives. In addition, the Principles Based Reserving Implementation (EX) Task Force of the NAIC, charged with analysis of the adoption of a principles-based reserving methodology, adopted the “conceptual framework” contained in a report issued by Rector & Associates, Inc., dated June 4, 2014 (as modified or supplemented, the “Rector Report”), that contains numerous recommendations pertaining to the regulation and use of certain captive reinsurers. Certain high-level recommendations have been adopted and assigned to various NAIC working groups, which working groups are in various stages of discussions regarding recommendations. One recommendation of the Rector Report has been adopted as Actuarial Guideline XL VIII (“AG48”). AG48 sets more restrictive standards on the permitted collateral utilized to back reserves of a captive. Other recommendations in the Rector Report are subject to ongoing comment and revision. It is unclear at this time to what extent the recommendations in the Rector Report, or additional or revised recommendations relating to captive transactions or reinsurance transactions in general, will be adopted by the NAIC. If the recommendations proposed in the Rector Report are implemented, it will likely be difficult for the Company to establish new captive financing arrangements on a basis consistent with past practices. As a result of AG48 and the Rector Report, the implementation of new captive structures in the future may be less capital efficient, may lead to lower product returns and/or increased product pricing or result in reduced sales of certain products. Additionally, in some circumstances AG48 and the implementation of the recommendations in the Rector Report could impact the Company’s ability to engage in certain reinsurance transactions with non-affiliates.

The NAIC’s Financial Regulation Standards and Accreditation (F) Committee is considering a proposal to include certain insurer-owned captives and special purpose vehicles that are single-state licensed but assume reinsurance from cedants operating in multiple states within the definition of “multi-state insurer” found in the preambles to Parts A and B of the NAIC Financial Regulation Standards and Accreditation Program. If adopted, the revised definition would subject certain captives to all of the Accreditation Standards applicable to other traditional multi-state insurers, including standards related to capital and surplus requirements, risk-based capital requirements, investment laws and credit for reinsurance laws. Although we do not expect the revised definition, if adopted, to affect our existing life insurance captives (or our ability to engage in life insurance captive transactions in the future), such application would likely prevent us from engaging in variable annuity captive transactions on the same or a similar basis as in the past and, if applied retroactively, would likely cause us to recapture business from and unwind our existing variable annuity captive (“VA Captive”).  While the recapture of business from our existing VA Captive would not have a material adverse effect on the Company given current market conditions, in the future the Company could experience fluctuations in its RBC ratio due to market volatility if it were prohibited from engaging in similar transactions or required to unwind its existing VA Captive, which could adversely affect our future financial condition and results of operations.

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Any regulatory action or changes in interpretation that materially adversely affects the Company’s use or materially increases the Company’s cost of using captives or reinsurers for the Affected Business, either retroactively or prospectively, could have a material adverse impact on the Company’s financial condition or results of operations. If the Company were required to discontinue its use of captives for intercompany reinsurance transactions on a retroactive basis, adverse impacts would include early termination fees payable with respect to certain structures, diminished capital position and higher cost of capital. Additionally, finding alternative means to support policy liabilities efficiently is an unknown factor that would be dependent, in part, on future market conditions and the Company’s ability to obtain required regulatory approvals. On a prospective basis, discontinuation of the use of captives could impact the types, amounts and pricing of products offered by the Company’s insurance subsidiaries.

Recently, new laws and regulations have been adopted in certain states that require life insurers to search for unreported deaths. The National Conference of Insurance Legislators (“NCOIL”) has adopted the Model Unclaimed Life Insurance Benefits Act (the “Unclaimed Benefits Act”) and legislation has been enacted in various states that is similar to the Unclaimed Benefits Act, although each state’s version differs in some respects. The Unclaimed Benefits Act would impose new requirements on insurers to periodically compare their in-force life insurance and annuity contracts and retained asset accounts against a Death Database, investigate any potential matches to confirm the death and determine whether benefits are due, and to attempt to locate the beneficiaries of any benefits that are due or, if no beneficiary can be located, escheat the benefit to the state as unclaimed property. Other states in which the Company does business may also consider adopting legislation similar to the Unclaimed Benefits Act. The Company cannot predict whether such legislation will be proposed or enacted in additional states. Additionally, the NAIC Unclaimed Life Insurance Benefits (A) Working Group recently undertook to develop a model unclaimed property law that overlaps with the NCOIL-based laws already adopted in several states. Other life insurance industry associations and regulatory associations are also considering these matters.

A number of state treasury departments and administrators of unclaimed property have audited life insurance companies for compliance with unclaimed property laws. The focus of the audits has been to determine whether there have been maturities of policies or contracts, or policies that have exceeded limiting age with respect to which death benefits or other payments under the policies should be treated as unclaimed property that should be escheated to the state. In addition, the audits have sought to identify unreported deaths of insureds. There is no clear basis in previously existing law for treating an unreported death as giving rise to a policy benefit that would be subject to unclaimed property procedures. A number of life insurers, however, have entered into resolution agreements with state treasury departments under which the life insurers agreed to procedures for comparing their previously issued life insurance and annuity contracts and retained asset accounts against a Death Database, treating confirmed deaths as giving rise to a death benefit under their policies, locating beneficiaries and paying them the benefits and interest, and escheating the benefits and interest to the state if the beneficiary could not be found. The amounts publicly reported to have been paid to beneficiaries and/or escheated to the states have been substantial.

The NAIC has established an Investigations of Life/Annuity Claims Settlement Practices (D) Task Force to coordinate targeted multi-state examinations of life insurance companies on claims settlement practices. The state insurance regulators on the Task Force have initiated targeted multi-state examinations of life insurance companies with respect to the companies’ claims paying practices and use of a Death Database to identify unreported deaths in their life insurance policies, annuity contracts and retained asset accounts. There is no clear basis in previously existing law for requiring a life insurer to search for unreported deaths in order to determine whether a benefit is owed. A number of life insurers, however, have entered into settlement or consent agreements with state insurance regulators under which the life insurers agreed to implement systems and procedures for periodically comparing their life insurance and annuity contracts and retained asset accounts against a Death Database, treating confirmed deaths as giving rise to a death benefit under their policies, locating beneficiaries and paying them the benefits and interest, and escheating the benefits and interest to the state if the beneficiary could not be found. It has been publicly reported that the life insurers have paid substantial administrative and/or examination fees to the insurance regulators in connection with the settlement or consent agreements.

Certain of the Company’s subsidiaries as well as certain other insurance companies from whom the Company has coinsured blocks of life insurance and annuity policies are subject to unclaimed property audits and/or targeted multistate examinations by insurance regulators similar to those described above. It is possible that the audits, examinations and/or the enactment of state laws similar to the Unclaimed Benefits Act could result in additional payments to beneficiaries, additional escheatment of funds deemed abandoned under state laws, payment of

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administrative penalties and/or examination fees to state authorities, and changes to the Company’s procedures for identifying unreported deaths and escheatment of abandoned property. It is possible any such additional payments and any costs related to changes in Company procedures could materially impact the Company’s financial results from operations. It is also possible that life insurers, including the Company, may be subject to claims, regulatory actions, law enforcement actions, and civil litigation arising from their prior business practices. Any resulting liabilities, payments or costs, including initial and ongoing costs of changes to the Company’s procedures or systems, could be significant and could have a material adverse effect on the Company’s financial condition or results of operations.

During December 2012, the West Virginia Treasurer filed actions against the Company’s subsidiaries Protective Life Insurance Company and West Coast Life Insurance Company in West Virginia state court (State of West Virginia ex rel. John D. Perdue v. Protective Life Insurance Company, State of West Virginia ex rel. John D. Perdue v. West Coast Life Insurance Company; Defendants’ Motions to Dismiss granted on December 27, 2013; Notice of Appeal filed on January 27, 2014; dismissal reversed by the West Virginia Supreme Court of Appeals on June 16, 2015; Petition for Rehearing filed by Defendant insurance companies on July 16, 2015). The actions, which also name numerous other life insurance companies, allege that the companies violated the West Virginia Uniform Unclaimed Property Act, seek to compel compliance with the Act, and seek payment of unclaimed property, interest, and penalties. While the legal theory or theories that may give rise to liability in the West Virginia Treasurer litigation are uncertain, it is possible that other jurisdictions may pursue similar actions. The Company does not currently believe that losses, if any, arising from the West Virginia Treasurer litigation will be material. The Company cannot, however, predict whether other jurisdictions will pursue similar actions or, if they do, whether such actions will have a material impact on the Company’s financial results from operations. Additionally, the California Controller has recently sued several insurance carriers for alleged failure to comply with audit requests from an appointed third party auditor. The Company cannot predict whether California might pursue a similar action against the Company and further cannot predict whether other jurisdictions might pursue similar actions. The Company does not believe however that any such action would have a material impact on the Company’s financial condition or results of operations.

Under insurance guaranty fund laws in most states, insurance companies doing business therein can be assessed up to prescribed limits for policyholder losses incurred by insolvent companies. From time to time, companies may be asked to contribute amounts beyond prescribed limits. The Company cannot predict the amount or timing of any future assessments.

The purchase of life insurance products is limited by state insurable interest laws, which in most jurisdictions require that the purchaser of life insurance name a beneficiary that has some interest in the sustained life of the insured. To some extent, the insurable interest laws present a barrier to the life settlement, or “stranger-owned” industry, in which a financial entity acquires an interest in life insurance proceeds, and efforts have been made in some states to liberalize the insurable interest laws. To the extent these laws are relaxed, the Company’s lapse assumptions may prove to be incorrect.

At the federal level, bills are routinely introduced in both chambers of the United States Congress (“Congress”) that could affect life insurers. In the past, Congress has considered legislation that would impact insurance companies in numerous ways, such as providing for an optional federal charter or a federal presence for insurance, preempting state law in certain respects regarding the regulation of reinsurance, increasing federal oversight in areas such as consumer protection and other matters. The Company cannot predict whether or in what form legislation will be enacted and, if so, whether the enacted legislation will positively or negatively affect the Company or whether any effects will be material.

The Company’s sole stockholder, Dai-ichi Life, is subject to regulation by the Japanese Financial Services Authority (“JFSA”). Under applicable laws and regulations, Dai-ichi Life is required to provide notice to or obtain the consent of the JFSA prior to taking certain actions or engaging in certain transactions, either directly or indirectly through its subsidiaries, including the Company and its consolidated subsidiaries.

The Company is subject to various conditions and requirements of the Healthcare Act. The Healthcare Act makes significant changes to the regulation of health insurance and may affect the Company in various ways. The Healthcare Act may affect the small blocks of business the Company has offered or acquired over the years that are, or are deemed to constitute, health insurance. The Healthcare Act may also affect the benefit plans the Company sponsors for employees or retirees and their dependents, the Company’s expense to provide such benefits, the tax liabilities of the

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Company in connection with the provision of such benefits, and the Company’s ability to attract or retain employees. In addition, the Company may be subject to regulations, guidance or determinations emanating from the various regulatory authorities authorized under the Healthcare Act. The Company cannot predict the effect that the Healthcare Act, or any regulatory pronouncement made thereunder, will have on its results of operations or financial condition.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) enacted in July 2010 made sweeping changes to the regulation of financial services entities, products and markets. Certain provisions of Dodd-Frank are or may become applicable to the Company, its competitors or those entities with which the Company does business. Such provisions include, but are not limited to the following: the establishment of the Federal Insurance Office, changes to the regulation and standards applicable to broker-dealers and investment advisors, changes to the regulation of reinsurance, changes to regulations affecting the rights of shareowners, and the imposition of additional regulation over credit rating agencies.

Dodd-Frank also created the Financial Stability Oversight Council (the “FSOC”), which has issued a final rule and interpretive guidance setting forth the methodology by which it will determine whether a non-bank financial company is a systemically important financial institution (“SIFI”). A non- bank financial company, such as the Company, that is designated as a SIFI by the FSOC will become subject to supervision by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). The Company is not currently supervised by the Federal Reserve. Such supervision could impact the Company’s requirements relating to capital, liquidity, stress testing, limits on counterparty credit exposure, compliance and governance, early remediation in the event of financial weakness and other prudential matters, and in other ways the Company currently cannot anticipate. FSOC-designated non-bank financial companies will also be required to prepare resolution plans, so- called “living wills,” that set out how they could most efficiently be liquidated if they endangered the U.S. financial system or the broader economy. The FSOC has conducted two rounds of SIFI designation consideration. However, this process is still very new, and the FSOC continues to make changes to its process for designating a company as a SIFI. The FSOC has made its initial SIFI designations, and the Company was not designated as such. However, the Company could be considered and designated at any time. Because the process is in its initial stages, the Company is at this time unable to predict the impact on an entity that is supervised as a SIFI by the Federal Reserve Board. The Company is not able to predict whether the capital requirements or other requirements imposed on SIFIs may impact the requirements applicable to the Company even if it is not designated as a SIFI. The uncertainty about regulatory requirements could influence the Company’s product line or other business decisions with respect to some product lines. There is a similarly uncertain international designation process. The Financial Stability Board, appointed by the G-20 Summit, recently designated nine insurers as “G-SIIs,” or global systemically-important insurers. As with the designation of SIFI’s, it is unclear at this time how additional capital and other requirements affect the insurance and financial industries. The insurers designated as G-SIIs to date represent organizations larger than the Company, but the possibility remains that the Company could be so designated.

Additionally, Dodd-Frank created the Consumer Financial Protection Bureau (“CFPB”), an independent division of the Department of Treasury with jurisdiction over credit, savings, payment, and other consumer financial products and services, other than investment products already regulated by the United States Securities and Exchange Commission (the “SEC”) or the U.S. Commodity Futures Trading Commission. CFPB has issued a rule to bring under its supervisory authority certain non-banks whose activities or products it determines pose risks to consumers. It is unclear at this time which activities or products will be covered by this rule. Certain of the Company’s subsidiaries sell products that may be regulated by the CFPB. CFPB continues to bring enforcement actions involving a growing number of issues, including actions using state Attorney’s General, which could directly or indirectly affect the Company or use any of its subsidiaries. Additionally, the CFPB is exploring the possibility of helping Americans manage their retirement savings and is considering the extent of its authority in that area. The Company is unable at this time to predict the impact of these activities on the Company.

Dodd-Frank includes a new framework of regulation of over-the- counter (“OTC”) derivatives markets which requires clearing of certain types of transactions which have been or are currently traded OTC by the Company. The types of transactions to be cleared are expected to increase in the future. The new framework could potentially impose additional costs, including increased margin requirements and additional regulation on the Company. Increased margin requirements on the Company’s part, combined with restrictions on securities that will qualify as eligible collateral, could continue to reduce its liquidity and require an increase in its holdings of cash and government securities with lower yields causing a reduction in income. The Company uses derivative financial instruments to mitigate a wide range of risks in connection with its businesses, including those arising from its variable annuity products with

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guaranteed benefit features. The derivative clearing requirements of Dodd- Frank could continue to increase the cost of the Company’s risk mitigation and expose it to the risk of a default by a clearinghouse with respect to the Company’s cleared derivative transactions.

Numerous provisions of Dodd-Frank require the adoption of implementing rules and/or regulations. The process of adopting such implementing rules and/or regulations have in some instances been delayed beyond the timeframes imposed by Dodd-Frank. Until the various final regulations are promulgated pursuant to Dodd-Frank, the full impact of the regulations on the Company will remain unclear. In addition, Dodd-Frank mandates multiple studies, which could result in additional legislation or regulation applicable to the insurance industry, the Company, its competitors or the entities with which the Company does business. Legislative or regulatory requirements imposed by or promulgated in connection with Dodd-Frank may impact the Company in many ways, including but not limited to the following: placing the Company at a competitive disadvantage relative to its competition or other financial services entities, changing the competitive landscape of the financial services sector and/or the insurance industry, making it more expensive for the Company to conduct its business, requiring the reallocation of significant company resources to government affairs, legal and compliance-related activities, causing historical market behavior or statistics utilized by the Company in connection with its efforts to manage risk and exposure to no longer be predictive of future risk and exposure or otherwise have a material adverse effect on the overall business climate as well as the Company’s financial condition and results of operations.

Broker-dealers, insurance agencies and other financial institutions sell the Company’s annuities to employee benefit plans and individual retirement accounts that are governed by the Employee Retirement Income Security Act (“ERISA”) and the Internal Revenue Code. Consequently, our activities and those of such parties are subject to restrictions that require ERISA fiduciaries to perform their duties solely in the interests of ERISA plan participants and beneficiaries, and that prohibit ERISA fiduciaries from causing a covered plan to engage in certain prohibited transactions. In general, the prohibited transaction rules restrict the provision of investment advice to ERISA plans and participants and Individual Retirement Accounts (“IRAs”) if fees are paid to the individual advisor, his or her firm or their affiliates in respect of the investment recommendation that vary according to the recommendation chosen.

In April 2015, the Department of Labor proposed new regulations that, if enacted, will significantly expand the definition of “investment advice” and increase the circumstances in which the Company and broker-dealers, insurance agencies and other financial institutions that sell the Company’s products could be deemed a fiduciary when providing investment advice with respect to ERISA plans or Individual Retirement Accounts. The Department of Labor also proposed amendments to long standing exemptions from the prohibited transaction provisions under ERISA that would increase fiduciary requirements in connection with transactions involving ERISA plans, plan participants and IRAs, and that would apply more onerous disclosure and contract requirements to such transactions. If the foregoing proposals are adopted, the Company may find it necessary to change sales representative and/or broker compensation, to limit the assistance or advice it can provide to owners of the Company’s annuities, or otherwise change the manner in which it designs and supports sales of its annuities.  This could have a material adverse impact on our ability to sell to annuities to ERISA Plans and IRAs.

Certain life insurance policies, contracts, and annuities offered by the Company’s subsidiaries are subject to regulation under the federal securities laws administered by the SEC. The federal securities laws contain regulatory restrictions and criminal, administrative, and private remedial provisions. From time to time, the SEC and the Financial Industry Regulatory Authority (“FINRA”) examine or investigate the activities of broker-dealers and investment advisors, including the Company’s affiliated broker-dealers and investment advisors. These examinations or investigations often focus on the activities of the registered representatives and registered investment advisors doing business through such entities and the entities’ supervision of those persons. It is possible that any examination or investigation could lead to enforcement action by the regulator and/or may result in payments of fines and penalties, payments to customers, or both, as well as changes in systems or procedures of such entities, any of which could have a material adverse effect on the Company’s financial condition or results of operations.

In addition, the SEC is reviewing the standard of conduct applicable to brokers, dealers, and investment advisers when those entities provide personalized investment advice about securities to retail customers. FINRA has also issued a report addressing how its member firms might identify and address conflicts of interest including conflicts related to the introduction of new products and services and the compensation of the member firms’ associated persons.

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These regulatory initiatives could have an impact on Company operations and the manner in which broker-dealers and investment advisers distribute the Company’s products.

The Company may also be subject to regulation by governments of the countries in which it currently does, or may in the future, do, business, as well as regulation by the U.S. Government with respect to its operations in foreign countries, such as the Foreign Corrupt Practices Act. Penalties for violating the various laws governing the Company’s business in other countries may include restrictions upon business operations, fines and imprisonment, both within the U.S. and abroad. U.S. enforcement of anti-corruption laws continues to increase in magnitude, and penalties may be substantial.

The Company is subject to conditions and requirements set forth in the Telephone Consumer Protection Act (“TCPA”) which places restrictions on the use of automated telephone and facsimile machines. Class action lawsuits alleging violations of the act have been filed against a number of companies, including life insurance carriers. These class action lawsuits contain allegations that defendant carriers were vicariously liable for the alleged wrongful conduct of agents who violated the TCPA. Some of the class actions have resulted in substantial settlements against other insurers. Any such actions against the Company could result in a material adverse effect upon our financial condition or results of operations.

Other types of regulation that could affect the Company and its subsidiaries include insurance company investment laws and regulations, state statutory accounting and reserving practices, antitrust laws, minimum solvency requirements, enterprise risk requirements, state securities laws, federal privacy laws, cybersecurity regulation, insurable interest laws, federal anti-money laundering and anti-terrorism laws, employment and immigration laws (including laws in Alabama where over half of the Company’s employees are located), and because the Company owns and operates real property, state, federal, and local environmental laws. Under some circumstances, severe penalties may be imposed for breach of these laws.

The Company cannot predict what form any future changes to laws and/or regulations affecting participants in the financial services sector and/or insurance industry, including the Company and its competitors or those entities with which it does business, may take, or what effect, if any, such changes may have.

New accounting rules, changes to existing accounting rules, or the grant of permitted accounting practices to competitors could negatively impact the Company.

The Company is required to comply with accounting principles generally accepted in the United States (“GAAP”). A number of organizations are instrumental in the development and interpretation of GAAP such as the SEC, the Financial Accounting Standards Board (“FASB”), and the American Institute of Certified Public Accountants (“AICPA”). GAAP is subject to constant review by these organizations and others in an effort to address emerging accounting rules and issue interpretative accounting guidance on a continual basis. The Company can give no assurance that future changes to GAAP will not have a negative impact on the Company. GAAP includes the requirement to carry certain assets and liabilities at fair value. These fair values are sensitive to various factors including, but not limited to, interest rate movements, credit spreads, and various other factors. Because of this, changes in these fair values may cause increased levels of volatility in the Company’s financial statements.

The FASB and the International Accounting Standards Board are working on several projects that could result in significant changes to GAAP and International Financial Reporting Standards (“IFRS”). Furthermore, the SEC is considering whether and how to incorporate IFRS into the U.S. financial reporting system. The changes to GAAP and potential incorporation of IFRS into the U.S. financial reporting system will impose special demands on issuers in the areas of governance, employee training, internal controls, contract fulfillment and disclosure and will likely affect how we manage our business, as it will likely affect other business processes such as design of compensation plans, product design, etc. The Company is unable to predict whether, and if so, when these projects and ultimately convergence with IFRS will be adopted and/or implemented.

In addition, the Company’s insurance subsidiaries are required to comply with statutory accounting principles (“SAP”). SAP and various components of SAP (such as actuarial reserving methodology) are subject to constant review by the NAIC and its task forces and committees as well as state insurance departments in an effort to address emerging issues and otherwise improve or alter financial reporting. Various proposals either are currently or have previously been

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pending before committees and task forces of the NAIC, some of which, if enacted, would negatively affect the Company. The NAIC is also currently working to reform model regulation in various areas, including comprehensive reforms relating to life insurance reserves and the accounting for such reserves. The Company cannot predict whether or in what form reforms will be enacted by state legislatures and, if so, whether the enacted reforms will positively or negatively affect the Company. In addition, the NAIC Accounting Practices and Procedures manual provides that state insurance departments may permit insurance companies domiciled therein to depart from SAP by granting them permitted accounting practices. The Company cannot predict whether or when the insurance departments of the states of domicile of its competitors may permit them to utilize advantageous accounting practices that depart from SAP, the use of which is not permitted by the insurance departments of the states of domicile of the Company’s insurance subsidiaries. With respect to regulations and guidelines, states sometimes defer to the interpretation of the insurance department of the state of domicile. Neither the action of the domiciliary state nor action of the NAIC is binding on a state. Accordingly, a state could choose to follow a different interpretation. The Company can give no assurance that future changes to SAP or components of SAP or the grant of permitted accounting practices to its competitors will not have a negative impact on the Company. For additional information regarding pending NAIC reforms, please see Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

During the quarter ended June 30, 2015, the Company sold no securities in transactions which were not registered under the Securities Act of 1933, as amended (the “Act”).

Purchases of Equity Securities by the Issuer

During the period of February 1, 2015 to June 30, 2015 (Successor Company) 100% of the Company’s stock was owned by Dai-ichi Life Insurance Company and was not available for repurchase by the Company. For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company did not repurchase any of its common stock.

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Item 6.Exhibits

Exhibit
Number
3(a)	Certificate of Incorporation of the Company effective as of February 1, 2015, incorporated by reference to Exhibit 3(a) to the Company’s Annual Report on Form 10-K filed February 26, 2015.
3(b)	Amended and Restated Bylaws of the Company effective February 1, 2015, incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed February 3, 2015.
10(a)†	2015 Annual Incentive Plan of the Company, attached hereto.
10(b)†	2015 Parent Stock-Based Award Provisions of the Company, attached hereto.
10(c)†	2015 Performance Units Provisions (for key officers) of the Company, attached hereto.
10(d)†	2015 Performance Units Provisions of the Company, attached hereto.
10(e)†	Amended 2015 Restricted Units Provisions of the Company, attached hereto.
31(a)	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31(b)	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32(a)	Certification Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32(b)	Certification Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Financial statements from the quarterly report on Form 10-Q of Protective Life Corporation for the quarter ended June 30, 2015, filed on August 7, 2015, formatted in XBRL: (i) the Consolidated Condensed Statements of Income, (ii) the Consolidated Condensed Statements of Comprehensive Income (Loss), (iii) the Consolidated Condensed Balance Sheets, (iv) the Consolidated Condensed Statement of Shareowners’ Equity, (v) the Consolidated Condensed Statements of Cash Flows, and (iv) the Notes to Consolidated Condensed Financial Statements.

† Management contract or compensatory plan or arrangement.

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SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	PROTECTIVE LIFE CORPORATION
Date: August 7, 2015	By:	/s/ Steven G. Walker
		Steven G. Walker
		Senior Vice President, Controller
		and Chief Accounting Officer

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EX-10.(A)

Exhibit 10(a)

PROTECTIVE LIFE CORPORATION

2015 ANNUAL INCENTIVE PLAN

1.Purpose.

The purpose of the Plan is to enable the Company and its Subsidiaries to attract, retain, motivate and reward qualified officers and key employees by providing them with the opportunity to earn competitive compensation directly linked to the Company’s performance.

2.Definitions.

Unless the context requires otherwise, the following terms as used in the Plan shall have the meanings ascribed to each below.

“Board” shall mean the Board of Directors of the Company.

“Committee” shall mean the Compensation and Management Succession Committee of the Board (or such other committee of the Board as the Board may designate from time to time) or any subcommittee thereof.

“Company” shall mean Protective Life Corporation.

“Participant” shall mean each officer or key employee of the Company or a Subsidiary whom the Committee designates as a participant in the Plan.

“Plan” shall mean the 2015 Protective Life Corporation Annual Incentive Plan, as set forth herein and as may be amended from time to time.

“Subsidiary” shall mean (1) any corporation of which the Company possesses directly or indirectly fifty percent (50%) or more of the total combined voting power of all classes of stock of such corporation and (2) any other business organization, regardless of form, in which the Company possesses directly or indirectly fifty percent (50%) or more of the total combined equity interests in such organization.

3.Administration.

The Committee shall administer and interpret the Plan. The Committee shall establish performance objectives in accordance with Section 4 and shall certify whether such performance objectives have been achieved. Any determination made by the Committee under the Plan shall be final and conclusive. The Committee may employ such legal counsel, consultants and agents (including counsel or agents who are employees of the Company or a Subsidiary) as it may deem desirable for the administration of the Plan and may rely upon any opinion received from any such

counsel, consultant or agent and any computation received from any such consultant or agent. All expenses incurred in the administration of the Plan, including (without limitation) expenses for the engagement of any counsel, consultant or agent, shall be paid by the Company. No member or former member of the Board or the Committee, or any other person involved in the administration of the Plan, shall be liable for any act, omission, interpretation, construction or determination made in connection with the Plan other than as a result of such individual’s willful misconduct.

4.Incentive Payments.

(a)Establishing the Performance Criteria. On or before June 1 with respect to 2015 and April 1 of each other calendar year during which the Plan is in effect, the Committee shall establish the performance objective or objectives that must be satisfied in order for a Participant to receive an incentive payment for that year. The Committee may establish different performance objectives for different Participants. For each Participant, the performance objective(s) shall state, in terms of an objective formula or standard, the method for computing the amount of the incentive payment payable to the Participant if the objective(s) are achieved. With respect to any Participant, the Committee may establish multiple performance objectives.  If it establishes multiple performance objectives with respect to any given Participant, the Committee shall provide whether (i) a specified percentage of the Participant’s annual incentive opportunity will be payable based on the achievement (in whole or in part) of a specified objective, (ii) payment of any amount is contingent upon achievement (in whole or in part) of more than one such criteria or (iii) the amount payable upon the achievement of one objective may be reduced or increased based on the level of achievement of a different objective.

(b)Available Performance Criteria.  Any performance objectives established under Section 4(a) shall be related to one of the following criteria, which may be determined solely by reference to the performance of the Company or a Subsidiary or a division or business unit or based on comparative performance relative to other companies: net income; operating income; book value; embedded value or economic value added; return on equity, assets or invested capital; assets, sales or revenues or growth in assets, sales or revenues; efficiency or expense management; capital adequacy (including risk-based capital); investment returns or asset quality; completion of acquisitions, financings, or similar transactions; customer service metrics; the value of new business or sales; or such other reasonable criteria as the Committee may recommend and the Board may approve.  Notwithstanding the immediately preceding sentence, the Committee may add other performance criteria to those specified in the immediately preceding sentence, subject to the approval by the Board of the inclusion of any such additional criterion.

(c)Amount Payable.  The Committee shall establish a target amount for each Participant that would be payable if each of the applicable performance objectives

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are 100% achieved.  Except as provided in Section 4(e), the amount actually payable in respect of any performance objective shall be determined based on the extent to which such objective (or such objective and any other linked performance objective) is met or exceeded, or the extent to which such objective(s) are only partially achieved.  The Committee may provide that amounts below or in excess of target will be payable for performance in excess of, or at stated levels below, targeted performance.  The Committee may establish a threshold level of achievement for any performance objective below which no amount shall be payable in respect of such performance objective.

(d)Effect of Termination of Employment.  Except as provided in the following sentence, unless the Committee shall determine to authorize a payment, no amount shall be payable to a Participant as an annual incentive award unless the Participant is still an employee of the Company or one of its Subsidiaries on the date payment is made or such earlier date as the Committee may specify. Unless the Committee shall otherwise determine to pay the Participant a greater amount, if a Participant’s employment terminates due to death, disability (as determined in accordance with generally applicable Company policies) or normal or early retirement under the terms of any retirement plan maintained by the Company or a Subsidiary, such Participant shall receive an annual incentive payment equal to the amount the Participant would have received if the Participant had remained employed through the end of the year, multiplied by a fraction, the numerator of which is the number of days that elapsed during the year in which the termination occurs before and including the date of the Participant’s termination of employment and the denominator of which is 365.

(e)Discretion.  Any other provision in the Plan to the contrary notwithstanding, (1) the Committee shall have the right, in its sole discretion, to pay to any Participant an annual incentive payment for such year in an amount based on individual performance or any other criteria or the occurrence of any such event that the Committee shall deem appropriate and (2) the Committee may provide for a minimum incentive payment to any or all, or any class of, Participants in respect of any calendar year, regardless of whether any applicable performance objectives are attained.

5.Payment.

Payment of any incentive payment determined under Section 4 shall be made to each Participant (subject to any valid deferral election made by the Participant) as soon as practicable after the Committee certifies that the applicable performance objectives have been achieved (or, in the case of any incentive payment payable under the provisions of Section 4(e), after the Committee determines the amount of any such payment or that any condition to such payment has been satisfied), but in no event later than the March 15 immediately following the calendar year for which such incentive

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payment is payable.  The provisions of this Section 5 shall be administered so the Plan is not a plan of deferred compensation as provided in Section 409A of the Internal Revenue Code of 1986, as amended.

6.General Provisions.

(a)Effectiveness of the Plan.  The Plan shall be effective with respect to the calendar year beginning January 1, 2015, and may continue in effect for subsequent calendar years, to the extent that the Committee recommends to the Board, and the Board approves, that the Plan be so continued.

(b)Amendment and Termination.  Notwithstanding Section 6(a), the Board or the Committee may at any time amend, suspend, discontinue or terminate the Plan; provided that no such amendment, suspension, discontinuance or termination shall adversely affect the rights of any Participant with respect to any calendar year that has already commenced.

(c)Designation of Beneficiary.  Each Participant may designate a beneficiary or beneficiaries (which beneficiary may be an entity other than a natural person) to receive any payments that may be made after the Participant’s death. Such designation may be changed or canceled at any time without the consent of any such beneficiary. Any such designation, change or cancellation must be made on a form or in a manner approved by or acceptable to the Committee and shall not be effective until received by the Committee. If no beneficiary has been named, or the designated beneficiary or beneficiaries shall have predeceased the Participant, the beneficiary shall be the Participant’s spouse or, if no spouse survives the Participant, the Participant’s estate. If a Participant designates more than one beneficiary, the payment shall be made to such beneficiaries in equal shares, unless the Participant has designated otherwise.

(d)Delegation.  Notwithstanding anything else contained herein to the contrary, the Committee may delegate authority for establishing performance objectives and any or all of its other duties and responsibilities under the Plan in respect of all Participants other than the Chief Executive Officer and all members of the Company’s Performance and Accountability Committee to a committee of officers comprised of the Chief Executive Officer, the Chief Financial Officer, the Executive Vice President, General Counsel and the Senior Vice President, Chief Human Resources Officer.  In the event that at any time any of the aforementioned offices shall be vacant (or the title associated with such position shall be changed), the person performing the substantial portion of the duties of such position shall serve as a member of such officer’s committee.

(e)No Right of Continued Employment.  Nothing in the Plan shall be construed as conferring upon any Participant any right to continue in the employment of the Company or its Subsidiaries.

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(f)No Limitation to Corporate Action.  Nothing in the Plan shall preclude the Company from authorizing the payment to the eligible employees of other compensation, including (without limitation) base salaries, awards under any other plan of the Company or its Subsidiaries, any other incentive payments or bonuses (whether or not based on the attainment of performance objectives) and retention or other special payments.

(g)Nonalienation of Benefits.  Except as expressly provided herein, no Participant or beneficiary shall have the power or right to transfer, anticipate, or otherwise encumber the Participant’s interest under the Plan. The Company’s obligations under the Plan are not assignable or transferable except to (1) a corporation which acquires all or substantially all of the Company’s assets or (2) any corporation into which the Company may be merged or consolidated. The provisions of the Plan shall inure to the benefit of each Participant and the Participant’s beneficiaries, heirs, executors, administrators or successors in interest.

(h)Withholding.  Any amount payable to a Participant or a beneficiary under the Plan shall be subject to any applicable federal, state and local income and employment taxes and any other amounts that the Company or a Subsidiary is required by law to deduct and withhold from such payment.

(i)Severability.  If any provision of the Plan is held unenforceable, the remainder of the Plan shall continue in full force and effect without regard to such unenforceable provision and shall be applied as though the unenforceable provision were not contained in the Plan.

(j)Governing Law.  The Plan shall be construed in accordance with and governed by the laws of the State of Delaware, without reference to the principles of conflict of laws.

(k)Headings.  Headings are inserted in the Plan for convenience of reference only and are to be ignored in the construction of the provisions of the Plan.

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IN WITNESS WHEREOF, Protective Life Corporation has executed this document as of July 23, 2015.

PROTECTIVE LIFE CORPORATION
By:
	Chairman of the Board, President and Chief Executive Officer
By:
	Vice Chairman and Chief Financial Officer
By:
	Executive Vice President, Secretary and General Counsel
By:
	Senior Vice President and Chief Human Resources Officer

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EX-10.(B)

Exhibit 10(b)

APPENDIX A

2015 PARENT STOCK-BASED AWARD PROVISIONS

On June 1, 2015, Protective Life Corporation (the “Company”) granted you a cash denominated award (“Parent Stock-Based Award”) that, subject to the satisfaction of the applicable terms and conditions related to such Parent Stock-Based Award, including, but not limited to, the satisfaction of the applicable service vesting conditions specified below, will entitle you to receive a cash amount determined in the manner described below.  You have also received a 2015 Parent Stock-Based Award Letter (the “Award Letter”), which together with these Provisions for 2015 Parent Stock-Based Award (“2015 Stock Based Provisions”), constitutes your full award.

1.Award.

(a)General Provisions.  The Initial Value and the Grant Date of the Parent Stock-Based Award are set forth in your Award Letter.

(b)Definitions.  For purposes of these 2015 Parent Stock-Based Award Provisions, the following terms shall have the following meanings:

“Board” shall mean the Board of Directors of the Company.

“Change in Control” shall mean the occurrence after June 1, 2015 of one or more of the following: (i) any one person or more than one person acting as a group (as provided in Code Section 409A) other than Parent or any of its affiliates (such person or group, an “Acquiring Person”) acquires ownership of the Company’s stock that, together with stock previously held by the Acquiring Person, constitutes more than 50% of the total fair market value or more than 50% of the total voting power of the Company, or (ii) an Acquiring Person acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Acquiring Person) assets from the Company that have a total gross fair market value equal to or more than 80% of the total gross fair market value of the Company’s assets immediately before such acquisition or acquisitions.

“Code” shall mean the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder.

“Committee” shall mean the Compensation and Management Succession Committee of the Board (or such other committee of the Board as the Board shall designate from time to time) or any subcommittee thereof.

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“Final Parent Stock Value” shall mean the average of the closing prices of a share of common stock of Parent as reported on the Tokyo Stock Exchange for each trading day in the month of December 2017.

“Initial Parent Stock Value” shall mean the average of the closing prices of a share of common stock of Parent as reported on the Tokyo Stock Exchange for each trading day in the month of February 2015.

“Initial Value” shall mean the initial dollar value assigned to your Stock Based Units, as specified in your Award Letter.

“Parent” shall mean The Dai-ichi Life Insurance Company, Limited.

“Parent Stock Percentage” shall mean the percentage derived from dividing the Final Parent Stock Value by the Initial Parent Stock Value.

“Participant” shall mean each person (including you) employed by the Company, or a Subsidiary, who is selected by the Committee to receive a Parent Stock-Based Award under the 2015 Parent Stock-Based Award Provisions.

“Subsidiary” shall mean any corporation of which the Company possesses directly or indirectly fifty percent (50%) or more of the total combined voting power of all classes of stock of such corporation and any other business organization, regardless of form, in which the Company possesses directly or indirectly fifty percent (50%) or more of the total combined equity interests in such organization.

2.Vesting and Payment of Parent Stock-Based Award.

(a)General Vesting Rule.  Unless vested on an earlier date as provided in these 2015 Parent Stock-Based Award Provisions, your Parent Stock-Based Award will vest on December 31, 2017, subject to your continued employment through such date.

(b)Payment of Parent Stock-Based Award.  If your Parent Stock-Based Award becomes vested in accordance with paragraph 2(a), it will be settled in cash not later than the March 15 immediately following the date as of which such Parent Stock-Based Award becomes vested.  The aggregate amount payable in respect of any vested Parent Stock-Based Award shall be equal to the product of the Initial Value and Parent Stock Percentage; provided, however, that if less than 100%of your Parent Stock-Based Award becomes vested, the amount payable shall be further multiplied by the percentage of such Parent Stock-Based Award that has become vested.

3.Change in Control.  In the event of a Change in Control, all of your Stock Based Units will immediately vest and shall be settled in cash, based on the Parent Stock Percentage determined by calculating the Final Parent Stock Value based on the closing prices of the Parent common stock on all trading days during the 30 day period ended on the date on which the Change in Control occurs.  Payment of the amount so determined will be paid within

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60 days following the date on which the Change in Control occurs.

4.Termination of Employment.

(a)Death, Disability or Normal Retirement.  If your employment is terminated by death, disability (as determined in accordance with generally applicable Company policies) or by retirement on or after normal retirement age under the terms of any retirement plan maintained by the Company or a Subsidiary, your Parent Stock-Based Award will vest in full.

(b)Early Retirement.  Unless the Committee determines to provide for treatment that is more favorable to you on such terms and conditions as the Committee may determine, if your employment with the Company and its Subsidiaries terminates due to retirement before normal retirement age, a pro-rated portion of your Parent Stock-Based Award that will immediately vest based on a fraction, the numerator of which is the number of complete and partial calendar months between January 1, 2015 and your retirement date, and the denominator of which is 36.  Any portion of your Parent Stock-Based Award that does not vest upon your early retirement pursuant to the preceding sentence will be forfeited.

(c)Involuntary Termination.  If your employment is involuntarily terminated by the Company, your Parent Stock-Based Award will immediately vest unless, if your employment is involuntarily terminated by the Company prior to July 30, 2016, the Committee determines otherwise (and subject to such conditions as the Committee may determine). Notwithstanding the foregoing, this provision shall not apply if your termination is for “Cause.”  For purposes of this award, “Cause” shall mean (1) your conviction or plea of nolo contendere to a felony; (2) an act or acts of extreme dishonesty or gross misconduct; or (3) violation of the Company’s Code of Business Conduct.

(d)Other Termination.  Unless the Committee determines to provide for treatment that is more favorable to you on such terms and conditions as the Committee may determine, if your employment is terminated for Cause prior to the date payment is made in respect of your Parent Stock-Based Award under paragraph 2(b) or for any reason not set forth in paragraphs 4(a), (b) or (c) prior to the applicable vesting dates specified in paragraph 2(a), your unvested Parent Stock-Based Award will be forfeited.

(e)Payment of Vested Parent Stock-Based Award.  Any Parent Stock-Based Award that becomes vested under this paragraph 4 by reason of your termination of employment prior to the date such Parent Stock-Based Award would otherwise have become vested pursuant to paragraph 2(a) shall nonetheless be payable at the same time and in the same manner as they would have been paid under paragraph 2(b) if you had remained in the Company’s employment through each of the applicable dates specified in paragraph 2(a).

5.Federal Income Tax Consequences.

(a)General.  The following description of the federal income tax consequences of the Parent Stock-Based Award is based on currently applicable provisions of the Code, and is only a general summary.  The summary does not discuss state and local tax laws, which may

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differ from the federal tax law, or federal estate, gift and employment tax laws.  You are urged to consult with your own tax advisor regarding the application of the tax laws to your particular situation.

(b)Grant of Parent Stock-Based Award.  This Parent-Stock Based Award grant will not subject you to federal income tax.

(c)Payment of Parent Stock-Based Award.  You will recognize ordinary income for federal income tax purposes on the date the Parent Stock-Based Award is earned and paid (the “Payment Date”), unless you have made an effective election under the Company’s Deferred Compensation Plan for Officers (“Deferred Compensation Plan”), as discussed in paragraph 5(d).  The amount of income recognized will be equal to the aggregate amount of cash paid.

(d)Deferred Compensation Plan.  You may elect to defer payment in respect of your vested Parent Stock-Based Award, and the recognition of taxable income with respect to such payment, by making deferral elections under the Deferred Compensation Plan.  If you make effective deferral elections, you will recognize ordinary income when the amount derived from the deferred portion of your Parent Stock-Based Award payment is paid from the Deferred Compensation Plan, in an amount equal to the amount of cash paid.

You will be provided with more information about this deferral opportunity and the Deferred Compensation Plan.

(e)ERISA.  This Parent Stock-Based Award is not qualified under Section 401(a) of the Code and is not subject to any of the provisions of the Employee Retirement Income Security Act of 1974.

6.Tax Withholding.  The Company will withhold from your Parent Stock-Based Award payment (or your payment from the Deferred Compensation Plan, if you have made deferral elections under that plan in respect to your Parent Stock-Based Award) an amount in cash sufficient to satisfy any applicable federal, state or local tax withholding obligation.

7.Non-transferability of Parent Stock-Based Award.  Your Parent Stock-Based Award may not be assigned, pledged, or otherwise transferred, except upon your death by the laws of intestacy or descent and distribution.

8.Beneficiary Designations.  You may name a beneficiary or beneficiaries (who must be members of your family and who may be named contingently or successively) with respect to your rights under your Parent Stock-Based Award (including the right to receive any payment in respect of Parent Stock-Based Award after your death) by submitting a written beneficiary designation in a form acceptable to the Company.  Any such designation will be effective only when filed with the Company’s Chief Accounting Officer (or such other person as the Company may designate) before your date of death, and will (unless specifically set forth therein) revoke all prior designations.  If there is no beneficiary designation in effect on the date of your death, your beneficiary will be your surviving spouse or, if you have no surviving spouse, your estate.

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9.Administration of the Award.  Parent Stock-Based Awards subject to these 2015 Parent Stock-Based Award Provisions shall be administered by the Committee, which shall have the authority to select the Participants, to determine the awards to be made to each Participant, and to determine the conditions subject to which awards will become payable under these 2015 Parent Stock-Based Award Provisions.  Notwithstanding anything else contained herein to the contrary, the Committee may delegate any and all of its duties and responsibilities in respect of all Participants other than the Chief Executive Officer and all members of the Company’s Performance and Accountability Committee to a committee of officers comprised of the Chief Executive Officer, the Chief Financial Officer, the Executive Vice President, General Counsel and the Senior Vice President, Chief Human Resources Officer.  In the event that, at any time any of the aforementioned offices shall be vacant (or the title associated with such position shall be changed), the person performing the duties of such position shall serve on such officer’s committee.

The Committee shall have full power to administer and interpret, and to adopt such rules and regulations consistent with the terms of, the 2015 Parent Stock-Based Award Provisions as the Committee deems necessary or advisable in order to carry out such provisions.  Except as otherwise provided herein, the Committee’s interpretation and construction of the 2015 Parent Stock-Based Award Provisions and its determination of any conditions applicable to Parent Stock-Based Awards or the granting of Parent Stock-Based Awards to specific Participants shall be conclusive and binding.

The Committee may employ such legal counsel, consultants and agents (including counsel or agents who are employees of the Company or a Subsidiary) as it may deem desirable for the administration of the 2015 Parent Stock-Based Award Provisions and may rely upon any opinion received from any such counsel, consultant or agent and any computation received from any such consultant or agent.  All expenses incurred in the administration of these 2015 Parent Stock-Based Award Provisions, including, without limitation, for the engagement of any counsel, consultant or agent, shall be paid by the Company.  No member or former member of the Board or the Committee shall be liable for any act, omission, interpretation, construction or determination made in connection with any Parent Stock-Based Awards under these 2015 Parent Stock-Based Award Provisions other than as a result of such individual’s willful misconduct.

10.Amendment.  By action of the Board or the Committee, the Company may from time to time amend, terminate or discontinue the 2015 Parent Stock-Based Award Provisions at any time, but no amendment, termination or discontinuance of these 2015 Parent Stock-Based Award Provisions will unfavorably affect any Parent Stock-Based Award previously granted.

11.Effect on Employment and Other Benefits.  Receipt of a Parent Stock-Based Award under the 2015 Parent Stock-Based Award Provisions does not give any Participant any right to receive awards in the future or to continue in the employ of the Company and its subsidiaries, and Parent Stock-Based Award recipients are subject to discipline and discharge in the same manner as any other employee.  Income recognized as a result of any payment in

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respect of Parent Stock-Based Awards will not be included in the formula for calculating benefits under the Company’s Pension, 401(k), and Disability Plans.

12.Cooperation in Litigation.  By accepting a Parent Stock-Based Award subject to these 2015 Parent Stock-Based Award Provisions, you agree that after your employment terminates (regardless of the reason), you will cooperate fully with the Company in connection with any current or future claims, lawsuits, arbitrations, proceedings, examinations, inquiries or investigations involving the Company that relate to your service with the Company.  This includes being available on reasonable notice for interviews and other communications with the Company’s counsel in connection with any such matter and appearing at the Company’s request (and without a subpoena) to be deposed or to give testimony.

13.Non-Solicitation Agreement.  By accepting a Parent Stock-Based Award subject to these 2015 Parent Stock-Based Award Provisions, you agree that for one year beginning on the date your employment terminates (regardless of the reason), you will not (directly or indirectly) hire, solicit for hire, or assist others in hiring or soliciting for hire, any employee of the Company or its subsidiaries (“Company Employees”).  This provision shall not apply if you worked in, or were a resident of, the state of California when your employment terminated.  This provision shall not prohibit you or a future employer of yours from hiring, soliciting for hire, or assisting others in hiring or soliciting for hire, any Company Employee who (1) responds to a general solicitation or advertisement that is not specifically directed to Company Employees, (2) is referred to you or your future employer by a search firm, employment agency or similar organization, or (3) directly or indirectly contacts you or your future employer on their own initiative and without having been solicited.

14.Trade Secrets; Solicitation of Customers.  By accepting a Parent Stock-Based Award subject to these 2015 Parent Stock-Based Award Provisions, you agree to permanently maintain the confidentiality of the Company’s “Trade Secrets.”  Trade Secrets shall include any trade secrets as defined by law, and shall specifically include information regarding customers and agents or prospective customers and agents; marketing and sales techniques, materials and information; records, documents and data; business practices, policies, procedures and strategies; product and pricing information; compensation arrangements; financial information; attorney-client communications; and any other confidential or proprietary information relating to the Company that is not available to the public.  (Information is not a Trade Secret, however, if it is available in the public domain, has been obtained from a source other than the Company, or has been lawfully obtained through means other than your employment relationship with the Company.)  In addition, by accepting a Parent Stock-Based Award subject to these 2015 Parent Stock-Based Award Provisions you agree that for one year beginning on the date your employment terminates (regardless of the reason), you will not — whether on your own behalf or on behalf of or in conjunction with any person or entity — use the Company’s Trade Secrets to solicit any business of the type conducted by the Company as of your termination date from any person or entity that was either (1) a customer or agent of the Company as of that date or (2) a prospective customer or agent contacted, called upon, or serviced by the Company during the twelve months before your termination date, or induce, promote, facilitate, or otherwise contribute to the solicitation of such customers or agents or prospective customers or agents through the use of Trade Secrets.

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15.Recovery of Damages by the Company.  You agree that if you were to violate any of paragraphs 12, 13, and 14, the amount of damages suffered by the Company would be difficult to determine.  Therefore, you agree that the Company will be entitled to recover liquidated damages from you equal to the amount of income that you realize under this Award (including all legally required withholdings) (or, if less, the portion thereof determined by the Committee) if the Committee reasonably determines in good faith that you violated any of paragraphs 12, 13, or 14.  All determinations under this paragraph shall be made by the Committee, acting reasonably and in good faith, and its determinations shall be final, binding and conclusive on you, the Company, and any other person or entity affected thereby.  This liquidated damages provision does not relinquish any equitable remedies and other claims for damages that the Company may have.

16.Acceptance of Award.  No action is required if you wish to accept your Parent Stock-Based Award.  If you wish to decline your Parent Stock-Based Award, you must provide the Company with notice of your decision on or before June 30, 2015 by writing or emailing Scott Adams, Protective Life Corporation, P. O. Box 2606, Birmingham, Alabama 35202 (Scott.Adams@Protective.com).

Questions regarding a Parent Stock-Based Award subject to these 2015 Parent Stock-Based Award Provisions and requests for additional information about the 2015 Parent Stock-Based Award Provisions or the Committee should be directed to Beth Hinson, Protective Life Corporation, P. O. Box 2606, Birmingham, Alabama 35202 (telephone (205) 268-3967, e-mail Beth.Hinson@Protective.com).  These 2015 Parent Stock-Based Award Provisions and your Award Letter contain the formal terms and conditions of your Award, and you should retain them for future reference.

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EX-10.(C)

Exhibit 10(c)

APPENDIX A

2015 PERFORMANCE UNITS PROVISIONS

On June 1, 2015, Protective Life Corporation (the “Company”) granted you performance units (“Performance Units”) that, subject to the satisfaction of the applicable terms and conditions related to such Performance Units, including, but not limited to, the satisfaction of the applicable performance vesting conditions specified below, will entitle you to receive a cash amount based on the PL Tangible Book Value.  You have also received a 2015 Performance Unit Award Letter (the “Award Letter”), which together with these Provisions for 2015 Performance Units (“2015 Performance Unit Provisions”), constitutes your “Performance Unit Award.”

1.General Provisions.  The number of Performance Units that you have been awarded, the Award Period of the Performance Units, and the Grant Date of the Performance Units are set forth in your Award Letter.

2.Earn-Out of Performance Units.

(a)General.  Whether you will receive any cash payment in respect of your Performance Unit Award will be determined based upon the extent to which the applicable performance objectives have been satisfied and, except as otherwise provided in paragraph 5 below, your continued employment until the date the Performance Units are paid.  Your right to vest in, and the amount payable in respect of, one-half of your Performance Units is dependent on the Company’s Cumulative After Tax Operating Earnings during the Award Period, and on Average Return on Equity over the Award Period with regard to the remaining one-half of the Performance Units, in each case as specified below.

(b)Cumulative After Tax Earnings.  Payment with respect to one-half of your Performance Units will be based on the Company’s Cumulative After Tax Operating Earnings during the Award Period, as determined in accordance with the following schedule:

Cumulative After Tax Operating Earnings (dollars in millions)	Percentage of Performance Units Earned
Less than $813	0	%
$926	100	%
$1,039 or more	200	%

There will be straight-line interpolation between Cumulative After Tax Operating Earnings between $813,000,000 and $926,000,000 to determine the exact percentage to

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be paid between 0% and 100%; and between $926,000,000 and $1,039,000,000 to determine the exact percentage to be paid between 100% and 200%.

(c)Return on Equity.  Payment with respect to one-half of your Performance Units will be based on the Company’s Average Return on Equity during the Award Period, as determined in accordance with the following schedule:

Average Return on Equity	Percentage of Performance Units Earned
Less than 5.0%	0	%
5.5%	100	%
6.0% or more	200	%

There will be straight-line interpolation between Average Return on Equity between 5.0% and 5.5% to determine the exact percentage to be paid between 0% and 100%; and between 5.5% and 6.0% to determine the exact percentage to be paid between 100% and 200%.

3.Definitions.

For purposes of these 2015 Performance Unit Provisions, the following terms shall have the following meanings:

“Average Return on Equity” shall mean Cumulative After Tax Operating Earnings during the Award Period divided by the average of the PL Tangible Book Value as of the end of each fiscal quarter during the Award Period (or, if applicable, the number of quarters completed through the date of a Change in Control), excluding accumulated other comprehensive income.

“Board” shall mean the Board of Directors of the Company.

“Change in Control” shall mean the occurrence after June 1, 2015 of one or more of the following: (i) any one person or more than one person acting as a group (as provided in Code Section 409A) other than Parent or any of its affiliates (such person or group, an “Acquiring Person”) acquires ownership of the Company’s stock that, together with stock previously held by the Acquiring Person, constitutes more than 50% of the total fair market value or more than 50% of the total voting power of the Company, or (ii) an Acquiring Person acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Acquiring Person) assets from the Company that have a total gross fair market value equal to or more than 80% of the total gross fair market value of the Company’s assets immediately before such acquisition or acquisitions.

“Code” shall mean the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder.

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“Committee” shall mean the Compensation and Management Succession Committee of the Board (or such other committee of the Board as the Board shall designate from time to time) or any subcommittee thereof.

“Cumulative After Tax Operating Earnings” is defined as the Company’s total income earned after taxes during the Award Period, excluding the impact of realized gains or losses on investments and derivatives, any impairment losses recorded on goodwill and other intangible assets created by the Merger of a subsidiary of the Parent into the Company effective February 1, 2015, any expense borne by the Company that was the result of actions or requirements of the Company’s Parent and were not included in the business plan, unplanned changes to income resulting from new accounting pronouncements.  Any lost income due to dividends paid in excess of planned amounts will be added back to determine after tax operating income.

“Merger” means the merger of another subsidiary of Parent with and into the Company as of February 1, 2015.

“Parent” shall mean The Dai-ichi Life Insurance Company, Limited.

“Participant” shall mean each person (including you) employed by the Company, or a Subsidiary, who is selected by the Committee to receive a Performance Unit Award under the 2015 Performance Unit Provisions.

“PL Tangible Book Value” as of any date shall mean the Company’s consolidated GAAP book value of equity less accumulated other comprehensive income, less goodwill created by the Merger (net of impairments), less other intangible assets created by the Merger (net of deferred taxes, accumulated amortization, and impairment), plus all dividends paid in excess of planned amounts during the performance period, plus any lost income (determined based on the 30 year treasury rate) on dividends in excess of planned amounts (plus any management fee paid to the Parent).

“PL Tangible Book Value Per Unit” shall equal the quotient of (i) PL Tangible Book Value as of the date of the most recent audited balance sheet preceding the date of determination divided by (ii) the Total PL Units as of the date of determination.

“Subsidiary” shall mean any corporation of which the Company possesses directly or indirectly fifty percent (50%) or more of the total combined voting power of all classes of stock of such corporation and any other business organization, regardless of form, in which the Company possesses directly or indirectly fifty percent (50%) or more of the total combined equity interests in such organization.

“Total PL Units” as of any date shall mean the sum of (i) the number of units determined by dividing PL Tangible Book Value as of the date of most recent audited balance sheet preceding June 1, 2015 by $100, and (ii) the number of units determined

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by dividing (A) the dollar amount or value of any capital contribution made to the Company directly or indirectly by the Parent during the Award Period by (B) the PL Tangible Book Value Per Unit determined as of the date of the most recent balance sheet preceding the date the capital contribution is made.

4.Time and Form of Payment.  As soon as practicable, but not later than 60 days, after the end of the Award Period, the Committee will determine the extent to which any Performance Unit Award has been earned. The value of each earned Performance Unit shall equal the PL Tangible Book Value Per Unit and shall be paid not later than the March 15 following the end of the Award Period.

5.Termination of Employment.

(a)Death, Disability or Retirement.  Unless the Committee determines to provide for treatment that is more favorable to you on such terms and conditions as the Committee may determine, if your employment is terminated by death, disability (as determined in accordance with generally applicable Company policies) or by retirement on or after early retirement age under the terms of any retirement plan maintained by the Company or a Subsidiary, you (or, as applicable, your legal representative or beneficiary) will receive a payment with respect to a pro-rata portion of your Performance Units, determined based on a fraction, the numerator of which is your period of employment during the Award Period and the denominator of which is the total number of days in the Award Period.  The amount in respect of your pro-rated Performance Units will be determined by applying the performance achieved through the end of the Award Period (or the date of a Change in Control, if applicable) against the schedules set forth in paragraph 2(b) and 2(c).  The remaining portion of your Performance Units (i.e., the excess over the pro-rated portion) shall be forfeited as the date your employment terminates.

(b)Special Termination.  If your employment is terminated by reason of (1) the divestiture of a business segment or a significant portion of the assets of the Company, or (2) a significant reduction by the Company in its salaried work force, the determination of whether, to what extent, and on what conditions any payment shall be made with respect to any unvested portion of your Performance Unit Award shall be at the discretion of the Committee.  Any portion of your Performance Units which the Committee determines is not eligible for payment under this paragraph 4(b) shall be forfeited as of the date your employment terminates.

(c)Other Termination.  Unless the Committee determines to provide for treatment that is more favorable to you on such terms and conditions as the Committee may determine, if your employment is terminated for any reason not set forth in paragraphs 5(a) or (b), any unvested portion of your Performance Unit Award will be forfeited.

5.Change in Control.  In the event of a Change in Control, the Award Period shall be deemed to have ended on the date of the Change in Control and you shall

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be deemed to have earned the greater of (i) 100% of the Performance Units, and (ii) the percentage of such Performance Units that would derive from applying the schedules in paragraphs 2(b) and 2(c) to Cumulative After Tax Operating Earnings and Average Return on Equity though the date of the Change in Control (instead of over the three-year Award Period).  Any earned Performance Units shall be paid based on the PL Tangible Book Value Per Unit as of the date of such Change in Control within 60 days following the date on which the Change in Control occurs.

6.Federal Income Tax Consequences.

(a)General.  The following description of the federal income tax consequences of the Performance Units is based on currently applicable provisions of the Code and regulations, and is only a general summary.  The summary does not discuss state and local tax laws, which may differ from the federal tax law, or federal estate, gift and employment tax laws. You are urged to consult with your own tax advisor regarding the application of the tax laws to your particular situation.

(b)Grant of Performance Units.  This grant of Performance Units will not cause you to be subject to federal income tax.

(c)Payment of Performance Units.  You will recognize ordinary income for federal income tax purposes on the date the Performance Units are earned and paid (the “Payment Date”), unless you have made an effective election under the Company’s Deferred Compensation Plan for Officers (“Deferred Compensation Plan”), as discussed in paragraph 6(d).  The amount of income recognized will be equal to the aggregate of the amount of cash paid.

(d)Deferred Compensation Plan.  You may elect to defer payment in respect of your earned Performance Units, and the recognition of taxable income with respect to such payment, by making deferral elections under the Deferred Compensation Plan.  If you make effective deferral elections, you will recognize ordinary income when the deferred portion of the amount payable on your Performance Units is paid from the Deferred Compensation Plan, in an amount equal to the amount of cash paid.

You will be provided with more information about this deferral opportunity, and the Deferred Compensation Plan, before your Performance Units become payable.

(e)ERISA.  This Performance Unit Award is not qualified under Section 401(a) of the Code and is not subject to any of the provisions of the Employee Retirement Income Security Act of 1974.]

7.Tax Withholding.  The Company will withhold from your Performance Units payment (or your payment from the Deferred Compensation Plan, if you have made deferral elections under that plan with respect to your Performance Units), an amount in cash sufficient to satisfy any applicable federal, state or local tax withholding obligation.

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8.Non-transferability of Performance Units.  Your Performance Units may not be assigned, pledged, or otherwise transferred, except upon your death by the laws of intestacy or descent and distribution.

9.Beneficiary Designations.  You may name a beneficiary or beneficiaries (who must be members of your family and who may be named contingently or successively) with respect to your rights under your Performance Unit Award (including the right to receive payment in respect of Performance Units after your death) by submitting a written beneficiary designation in a form acceptable to the Company.  Any such designation will be effective only when filed with the Company’s Chief Accounting Officer (or such other person as the Company may designate) before your date of death, and will (unless specifically set forth therein) revoke all prior designations.  If there is no beneficiary designation in effect on the date of your death, your beneficiary will be your surviving spouse or, if you have no surviving spouse, your estate.

10.Administration of the Award.  Performance Unit Awards subject to these 2015 Performance Unit Provisions shall be administered by the Committee, which shall have the authority to select the Participants, to determine the awards to be made to each Participant, and to determine the conditions subject to which awards will become payable under the 2015 Performance Unit Provisions.  Notwithstanding anything else contained herein to the contrary, the Committee may delegate any or all of its duties and responsibilities in respect of all Participants other than the Chief Executive Officer and all members of the Company’s Performance and Accountability Committee to a committee of officers comprised of the Chief Executive Officer, the Chief Financial Officer, the Executive Vice President, General Counsel and the Senior Vice President, Chief Human Resources Officer.  In the event that, at any time any of the aforementioned offices shall be vacant (or the title associated with such position shall be changed) the person performing the duties of such position shall serve on such officer’s committee.

The Committee shall have full power to administer and interpret, and to adopt such rules and regulations consistent with the terms of, the 2015 Performance Unit Provisions as the Committee deems necessary or advisable in order to carry out such provisions.  Except as otherwise provided herein, the Committee’s interpretation and construction of the 2015 Performance Unit Provisions and its determination of any conditions applicable to, or the granting of, Performance Unit Awards to specific Participants shall be conclusive and binding.

The Committee may employ such legal counsel, consultants and agents (including counsel or agents who are employees of the Company or a Subsidiary) as it may deem desirable for the administration of the 2015 Performance Unit Provisions and may rely upon any opinion received from any such counsel, consultant or agent and any computation received from any such consultant or agent.  All expenses incurred in the administration of these 2015 Performance Unit Provisions, including, without limitation,

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for the engagement of any counsel, consultant or agent, shall be paid by the Company.  No member or former member of the Board or the Committee shall be liable for any act, omission, interpretation, construction or determination made in connection with any Performance Unit Awards under these 2015 Performance Unit Provisions other than as a result of such individual’s willful misconduct.

11.Amendment.  By action of the Board or the Committee, the Company may from time to time amend, terminate or discontinue the 2015 Performance Unit Provisions at any time, but no amendment, termination or discontinuance of these 2015 Performance Unit Provisions will unfavorably affect any Performance Unit Award previously granted.

12.Effect on Employment and Other Benefits.  Receipt of a Performance Unit Award under the 2015 Performance Unit Provisions does not give any Participant any right to receive awards in the future or to continue in the employ of the Company and its subsidiaries, and Performance Unit Award recipients are subject to discipline and discharge in the same manner as any other employee.  Income recognized as a result of any payment in respect of Performance Units will not be included in the formula for calculating benefits under the Company’s Pension, 401(k), and Disability Plans.

13.Cooperation in Litigation.  By accepting a Performance Unit Award subject to these 2015 Performance Unit Provisions, you agree that after your employment terminates (regardless of the reason), you will cooperate fully with the Company in connection with any current or future claims, lawsuits, arbitrations, proceedings, examinations, inquiries or investigations involving the Company that relate to your service with the Company.  This includes being available on reasonable notice for interviews and other communications with the Company’s counsel in connection with any such matter and appearing at the Company’s request (and without a subpoena) to be deposed or to give testimony.

14.Non-Solicitation Agreement.  By accepting a Performance Unit Award subject to these 2015 Performance Unit Provisions, you agree that for one year beginning on the date your employment terminates (regardless of the reason), you will not (directly or indirectly) hire, solicit for hire, or assist others in hiring or soliciting for hire, any employee of the Company or its subsidiaries (“Company Employees”).  This provision shall not apply if you worked in, or were a resident of, the state of California when your employment terminated.  This provision shall not prohibit you or a future employer of yours from hiring, soliciting for hire, or assisting others in hiring or soliciting for hire, any Company Employee who (1) responds to a general solicitation or advertisement that is not specifically directed to Company Employees, (2) is referred to you or your future employer by a search firm, employment agency or similar organization, or (3) directly or indirectly contacts you or your future employer on their own initiative and without having been solicited.

15.Trade Secrets; Solicitation of Customers.  By accepting a Performance Unit Award subject to these 2015 Performance Unit Provisions, you agree to

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permanently maintain the confidentiality of the Company’s “Trade Secrets.”  Trade Secrets shall include any trade secrets as defined by law, and shall specifically include information regarding customers and agents or prospective customers and agents; marketing and sales techniques, materials and information; records, documents and data; business practices, policies, procedures and strategies; product and pricing information; compensation arrangements; financial information; attorney-client communications; and any other confidential or proprietary information relating to the Company that is not available to the public.  (Information is not a Trade Secret, however, if it is available in the public domain, has been obtained from a source other than the Company, or has been lawfully obtained through means other than your employment relationship with the Company.)  In addition, by accepting a Performance Unit Award subject to these 2015 Performance Unit Provisions you agree that for one year beginning on the date your employment terminates (regardless of the reason), you will not — whether on your own behalf or on behalf of or in conjunction with any person or entity — use the Company’s Trade Secrets to solicit any business of the type conducted by the Company as of your termination date from any person or entity that was either (1) a customer or agent of the Company as of that date or (2) a prospective customer or agent contacted, called upon, or serviced by the Company during the twelve months before your termination date, or induce, promote, facilitate, or otherwise contribute to the solicitation of such customers or agents or prospective customers or agents through the use of Trade Secrets.

16.Recovery of Damages by the Company.  You agree that if you were to violate any of paragraphs 12, 13, or 14, the amount of damages suffered by the Company would be difficult to determine.  Therefore, you agree that the Company will be entitled to recover liquidated damages from you equal to the amount of income that you realize under this Award (including all legally required withholdings) (or, if less, the portion thereof determined by the Committee) if the Committee reasonably determines in good faith that you violated any of paragraphs 12, 13, or 14.  All determinations under this paragraph shall be made by the Committee, acting reasonably and in good faith, and its determinations shall be final, binding and conclusive on you, the Company, and any other person or entity affected thereby.  This liquidated damages provision does not relinquish any equitable remedies and other claims for damages that the Company may have.

17.Acceptance of Award.  No action is required if you wish to accept your Performance Unit Award.  If you wish to decline your Performance Unit Award, you must provide the Company with notice of your decision on or before June 30, 2015 by writing or emailing Scott Adams, Protective Life Corporation, P. O. Box 2606, Birmingham, Alabama 35202 (Scott.Adams@Protective.com).

Questions regarding a Performance Unit Award subject to these 2015 Performance Unit Provisions and requests for additional information about the 2015 Performance Unit Provisions or the Committee should be directed to Beth Hinson, Protective Life Corporation, P. O. Box 2606, Birmingham, Alabama 35202 (telephone

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(205) 268-3967, e-mail Beth.Hinson@Protective.com).  These 2015 Performance Unit Provisions and your Award Letter contain the formal terms and conditions of your Award, and you should retain them for future reference.

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EX-10.(D)

Exhibit 10(d)

APPENDIX A

2015 PERFORMANCE UNITS PROVISIONS

On June 1, 2015, Protective Life Corporation (the “Company”) granted you performance units (“Performance Units”) that, subject to the satisfaction of the applicable terms and conditions related to such Performance Units, including, but not limited to, the satisfaction of the applicable performance vesting conditions specified below, will entitle you to receive a cash amount based on the PL Tangible Book Value.  You have also received a 2015 Performance Unit Award Letter (the “Award Letter”), which together with these Provisions for 2015 Performance Units (“2015 Performance Unit Provisions”), constitutes your “Performance Unit Award.”

1.General Provisions.  The number of Performance Units that you have been awarded, the Award Period of the Performance Units, and the Grant Date of the Performance Units are set forth in your Award Letter.

2.Earn-Out of Performance Units.

(a)General.  Whether you will receive any cash payment in respect of your Performance Unit Award will be determined based upon the extent to which the applicable performance objective has been satisfied and, except as otherwise provided in paragraph 5 below, your continued employment until the date the Performance Units are paid.

(b)Cumulative After Tax Earnings.  Payment with respect to your Performance Units will be based on the Company’s Cumulative After Tax Operating Earnings during the Award Period, as determined in accordance with the following schedule:

Cumulative After Tax Operating Earnings (dollars in millions)	Percentage of Performance Units Earned
Less than $813	0	%
$926	100	%
$1,039 or more	200	%

There will be straight-line interpolation between Cumulative After Tax Operating Earnings between $813,000,000 and $926,000,000 to determine the exact percentage to be paid between 0% and 100%; and between $926,000,000 and $1,039,000,000 to determine the exact percentage to be paid between 100% and 200%.

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3.Definitions.

For purposes of these 2015 Performance Unit Provisions, the following terms shall have the following meanings:

“Board” shall mean the Board of Directors of the Company.

“Change in Control” shall mean the occurrence after June 1, 2015 of one or more of the following: (i) any one person or more than one person acting as a group (as provided in Code Section 409A) other than Parent or any of its affiliates (such person or group, an “Acquiring Person”) acquires ownership of the Company’s stock that, together with stock previously held by the Acquiring Person, constitutes more than 50% of the total fair market value or more than 50% of the total voting power of the Company, or (ii) an Acquiring Person acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Acquiring Person) assets from the Company that have a total gross fair market value equal to or more than 80% of the total gross fair market value of the Company’s assets immediately before such acquisition or acquisitions.

“Code” shall mean the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder.

“Committee” shall mean the Compensation and Management Succession Committee of the Board (or such other committee of the Board as the Board shall designate from time to time) or any subcommittee thereof.

“Cumulative After Tax Operating Earnings” is defined as the Company’s total income earned after taxes during the Award Period, excluding the impact of realized gains or losses on investments and derivatives, any impairment losses recorded on goodwill and other intangible assets created by the Merger of a subsidiary of the Parent into the Company effective February 1, 2015, any expense borne by the Company that was the result of actions or requirements of the Company’s Parent and were not included in the business plan, unplanned changes to income resulting from new accounting pronouncements.  Any lost income due to dividends paid in excess of planned amounts will be added back to determine after tax operating income.

“Merger” means the merger of another subsidiary of Parent with and into the Company as of February 1, 2015.

“Parent” shall mean The Dai-ichi Life Insurance Company, Limited.

“Participant” shall mean each person (including you) employed by the Company, or a Subsidiary, who is selected by the Committee to receive a Performance Unit Award under the 2015 Performance Unit Provisions.

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“PL Tangible Book Value” as of any date shall mean the Company’s consolidated GAAP book value of equity less accumulated other comprehensive income, less goodwill created by the Merger (net of impairments), less other intangible assets created by the Merger (net of deferred taxes, accumulated amortization, and impairment), plus all dividends paid in excess of planned amounts during the performance period, plus any lost income (determined based on the 30 year treasury rate) on dividends in excess of planned amounts (plus any management fee paid to the Parent).

“PL Tangible Book Value Per Unit” shall equal the quotient of (i) PL Tangible Book Value as of the date of the most recent audited balance sheet preceding the date of determination divided by (ii) the Total PL Units as of the date of determination.

“Subsidiary” shall mean any corporation of which the Company possesses directly or indirectly fifty percent (50%) or more of the total combined voting power of all classes of stock of such corporation and any other business organization, regardless of form, in which the Company possesses directly or indirectly fifty percent (50%) or more of the total combined equity interests in such organization.

“Total PL Units” as of any date shall mean the sum of (i) the number of units determined by dividing PL Tangible Book Value as of the date of most recent audited balance sheet preceding June 1, 2015 by $100, and (ii) the number of units determined by dividing (A) the dollar amount or value of any capital contribution made to the Company directly or indirectly by the Parent during the Award Period by (B) the PL Tangible Book Value Per Unit determined as of the date of the most recent balance sheet preceding the date the capital contribution is made.

4.Time and Form of Payment.  As soon as practicable, but not later than 60 days, after the end of the Award Period, the Committee will determine the extent to which any Performance Unit Award has been earned. The value of each earned Performance Unit shall equal the PL Tangible Book Value Per Unit and shall be paid not later than the March 15 following the end of the Award Period.

5.Termination of Employment.

(a)Death, Disability or Retirement.  Unless the Committee determines to provide for treatment that is more favorable to you on such terms and conditions as the Committee may determine, if your employment is terminated by death, disability (as determined in accordance with generally applicable Company policies) or by retirement on or after early retirement age under the terms of any retirement plan maintained by the Company or a Subsidiary, you (or, as applicable, your legal representative or beneficiary) will receive a payment with respect to a pro-rata portion of your Performance Units, determined based on a fraction, the numerator of which is your period of employment during the Award Period and the denominator of which is the total number of days in the Award Period.  The amount in respect of your pro-rated Performance Units will be determined by applying the performance achieved through

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the end of the Award Period (or the date of a Change in Control, if applicable) against the schedule set forth in paragraph 2(b).  The remaining portion of your Performance Units (i.e., the excess over the pro-rated portion) shall be forfeited as the date your employment terminates.

(b)Special Termination.  If your employment is terminated by reason of (1) the divestiture of a business segment or a significant portion of the assets of the Company, or (2) a significant reduction by the Company in its salaried work force, the determination of whether, to what extent, and on what conditions any payment shall be made with respect to any unvested portion of your Performance Unit Award shall be at the discretion of the Committee.  Any portion of your Performance Units which the Committee determines is not eligible for payment under this paragraph 4(b) shall be forfeited as of the date your employment terminates.

(c)Other Termination.  Unless the Committee determines to provide for treatment that is more favorable to you on such terms and conditions as the Committee may determine, if your employment is terminated for any reason not set forth in paragraphs 5(a) or (b), any unvested portion of your Performance Unit Award will be forfeited.

5.Change in Control.  In the event of a Change in Control, the Award Period shall be deemed to have ended on the date of the Change in Control and you shall be deemed to have earned the greater of (i) 100% of the Performance Units, and (ii) the percentage of such Performance Units that would derive from applying the schedule in paragraph 2(b) to Cumulative After Tax Operating Earnings though the date of the Change in Control (instead of over the three-year Award Period).  Any earned Performance Units shall be paid based on the PL Tangible Book Value Per Unit as of the date of such Change in Control within 60 days following the date on which the Change in Control occurs.

6.Federal Income Tax Consequences.

(a)General.  The following description of the federal income tax consequences of the Performance Units is based on currently applicable provisions of the Code and regulations, and is only a general summary.  The summary does not discuss state and local tax laws, which may differ from the federal tax law, or federal estate, gift and employment tax laws. You are urged to consult with your own tax advisor regarding the application of the tax laws to your particular situation.

(b)Grant of Performance Units.  This grant of Performance Units will not cause you to be subject to federal income tax.

(c)Payment of Performance Units.  You will recognize ordinary income for federal income tax purposes on the date the Performance Units are earned and paid (the “Payment Date”), unless you have made an effective election under the Company’s Deferred Compensation Plan for Officers (“Deferred Compensation Plan”), as discussed

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in paragraph 6(d).  The amount of income recognized will be equal to the aggregate of the amount of cash paid.

(d)Deferred Compensation Plan.  You may elect to defer payment in respect of your earned Performance Units, and the recognition of taxable income with respect to such payment, by making deferral elections under the Deferred Compensation Plan.  If you make effective deferral elections, you will recognize ordinary income when the deferred portion of the amount payable on your Performance Units is paid from the Deferred Compensation Plan, in an amount equal to the amount of cash paid.

You will be provided with more information about this deferral opportunity, and the Deferred Compensation Plan, before your Performance Units become payable.

(e)ERISA.  This Performance Unit Award is not qualified under Section 401(a) of the Code and is not subject to any of the provisions of the Employee Retirement Income Security Act of 1974.]

7.Tax Withholding.  The Company will withhold from your Performance Units payment (or your payment from the Deferred Compensation Plan, if you have made deferral elections under that plan with respect to your Performance Units), an amount in cash sufficient to satisfy any applicable federal, state or local tax withholding obligation.

8.Non-transferability of Performance Units.  Your Performance Units may not be assigned, pledged, or otherwise transferred, except upon your death by the laws of intestacy or descent and distribution.

9.Beneficiary Designations.  You may name a beneficiary or beneficiaries (who must be members of your family and who may be named contingently or successively) with respect to your rights under your Performance Unit Award (including the right to receive payment in respect of Performance Units after your death) by submitting a written beneficiary designation in a form acceptable to the Company.  Any such designation will be effective only when filed with the Company’s Chief Accounting Officer (or such other person as the Company may designate) before your date of death, and will (unless specifically set forth therein) revoke all prior designations.  If there is no beneficiary designation in effect on the date of your death, your beneficiary will be your surviving spouse or, if you have no surviving spouse, your estate.

10.Administration of the Award.  Performance Unit Awards subject to these 2015 Performance Unit Provisions shall be administered by the Committee, which shall have the authority to select the Participants, to determine the awards to be made to each Participant, and to determine the conditions subject to which awards will become payable under the 2015 Performance Unit Provisions.  Notwithstanding anything else contained herein to the contrary, the Committee may delegate any or all of its duties and responsibilities in respect of all Participants other than the Chief Executive Officer and

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all members of the Company’s Performance and Accountability Committee to a committee of officers comprised of the Chief Executive Officer, the Chief Financial Officer, the Executive Vice President, General Counsel and the Senior Vice President, Chief Human Resources Officer.  In the event that, at any time any of the aforementioned offices shall be vacant (or the title associated with such position shall be changed) the person performing the duties of such position shall serve on such officer’s committee.

The Committee shall have full power to administer and interpret, and to adopt such rules and regulations consistent with the terms of, the 2015 Performance Unit Provisions as the Committee deems necessary or advisable in order to carry out such provisions.  Except as otherwise provided herein, the Committee’s interpretation and construction of the 2015 Performance Unit Provisions and its determination of any conditions applicable to, or the granting of, Performance Unit Awards to specific Participants shall be conclusive and binding.

The Committee may employ such legal counsel, consultants and agents (including counsel or agents who are employees of the Company or a Subsidiary) as it may deem desirable for the administration of the 2015 Performance Unit Provisions and may rely upon any opinion received from any such counsel, consultant or agent and any computation received from any such consultant or agent.  All expenses incurred in the administration of these 2015 Performance Unit Provisions, including, without limitation, for the engagement of any counsel, consultant or agent, shall be paid by the Company.  No member or former member of the Board or the Committee shall be liable for any act, omission, interpretation, construction or determination made in connection with any Performance Unit Awards under these 2015 Performance Unit Provisions other than as a result of such individual’s willful misconduct.

11.Amendment.  By action of the Board or the Committee, the Company may from time to time amend, terminate or discontinue the 2015 Performance Unit Provisions at any time, but no amendment, termination or discontinuance of these 2015 Performance Unit Provisions will unfavorably affect any Performance Unit Award previously granted.

12.Effect on Employment and Other Benefits.  Receipt of a Performance Unit Award under the 2015 Performance Unit Provisions does not give any Participant any right to receive awards in the future or to continue in the employ of the Company and its subsidiaries, and Performance Unit Award recipients are subject to discipline and discharge in the same manner as any other employee.  Income recognized as a result of any payment in respect of Performance Units will not be included in the formula for calculating benefits under the Company’s Pension, 401(k), and Disability Plans.

13.Cooperation in Litigation.  By accepting a Performance Unit Award subject to these 2015 Performance Unit Provisions, you agree that after your employment terminates (regardless of the reason), you will cooperate fully with the Company in connection with any current or future claims, lawsuits, arbitrations,

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proceedings, examinations, inquiries or investigations involving the Company that relate to your service with the Company.  This includes being available on reasonable notice for interviews and other communications with the Company’s counsel in connection with any such matter and appearing at the Company’s request (and without a subpoena) to be deposed or to give testimony.

14.Non-Solicitation Agreement.  By accepting a Performance Unit Award subject to these 2015 Performance Unit Provisions, you agree that for one year beginning on the date your employment terminates (regardless of the reason), you will not (directly or indirectly) hire, solicit for hire, or assist others in hiring or soliciting for hire, any employee of the Company or its subsidiaries (“Company Employees”).  This provision shall not apply if you worked in, or were a resident of, the state of California when your employment terminated.  This provision shall not prohibit you or a future employer of yours from hiring, soliciting for hire, or assisting others in hiring or soliciting for hire, any Company Employee who (1) responds to a general solicitation or advertisement that is not specifically directed to Company Employees, (2) is referred to you or your future employer by a search firm, employment agency or similar organization, or (3) directly or indirectly contacts you or your future employer on their own initiative and without having been solicited.

15.Trade Secrets; Solicitation of Customers.  By accepting a Performance Unit Award subject to these 2015 Performance Unit Provisions, you agree to permanently maintain the confidentiality of the Company’s “Trade Secrets.”  Trade Secrets shall include any trade secrets as defined by law, and shall specifically include information regarding customers and agents or prospective customers and agents; marketing and sales techniques, materials and information; records, documents and data; business practices, policies, procedures and strategies; product and pricing information; compensation arrangements; financial information; attorney-client communications; and any other confidential or proprietary information relating to the Company that is not available to the public.  (Information is not a Trade Secret, however, if it is available in the public domain, has been obtained from a source other than the Company, or has been lawfully obtained through means other than your employment relationship with the Company.)  In addition, by accepting a Performance Unit Award subject to these 2015 Performance Unit Provisions you agree that for one year beginning on the date your employment terminates (regardless of the reason), you will not — whether on your own behalf or on behalf of or in conjunction with any person or entity — use the Company’s Trade Secrets to solicit any business of the type conducted by the Company as of your termination date from any person or entity that was either (1) a customer or agent of the Company as of that date or (2) a prospective customer or agent contacted, called upon, or serviced by the Company during the twelve months before your termination date, or induce, promote, facilitate, or otherwise contribute to the solicitation of such customers or agents or prospective customers or agents through the use of Trade Secrets.

16.Recovery of Damages by the Company.  You agree that if you were to violate any of paragraphs 12, 13, or 14, the amount of damages suffered by the Company would be difficult to determine.  Therefore, you agree that the Company will

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be entitled to recover liquidated damages from you equal to the amount of income that you realize under this Award (including all legally required withholdings) (or, if less, the portion thereof determined by the Committee) if the Committee reasonably determines in good faith that you violated any of paragraphs 12, 13, or 14.  All determinations under this paragraph shall be made by the Committee, acting reasonably and in good faith, and its determinations shall be final, binding and conclusive on you, the Company, and any other person or entity affected thereby.  This liquidated damages provision does not relinquish any equitable remedies and other claims for damages that the Company may have.

17.Acceptance of Award.  No action is required if you wish to accept your Performance Unit Award.  If you wish to decline your Performance Unit Award, you must provide the Company with notice of your decision on or before June 30, 2015 by writing or emailing Scott Adams, Protective Life Corporation, P. O. Box 2606, Birmingham, Alabama 35202 (Scott.Adams@Protective.com).

Questions regarding a Performance Unit Award subject to these 2015 Performance Unit Provisions and requests for additional information about the 2015 Performance Unit Provisions or the Committee should be directed to Beth Hinson, Protective Life Corporation, P. O. Box 2606, Birmingham, Alabama 35202 (telephone (205) 268-3967, e-mail Beth.Hinson@Protective.com).  These 2015 Performance Unit Provisions and your Award Letter contain the formal terms and conditions of your Award, and you should retain them for future reference.

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EX-10.(E)

Exhibit 10(e)

APPENDIX A

AMENDED 2015 RESTRICTED UNITS PROVISIONS

On June 1, 2015, Protective Life Corporation (the “Company”) granted you restricted units (“Restricted Units”) that, subject to the satisfaction of the applicable terms and conditions related to such Restricted Units, including, but not limited to, the satisfaction of the applicable service vesting conditions specified below, will entitle you to receive a cash amount based on the Company’s Tangible Book Value.  You have also received a 2015 Restricted Unit Award Letter (the “Award Letter”), which together with these Provisions for 2015 Restricted Units (“2015 Restricted Unit Provisions”), constitutes your “Restricted Unit Award.”

1.Award.

(a)General Provisions.  The number of Restricted Units that you have been awarded, and the Grant Date of the Restricted Units, are set forth in your Award Letter.

(b)Definitions.  For purposes of these 2015 Restricted Unit Provisions, the following terms shall have the following meanings:

“Board” shall mean the Board of Directors of the Company.

“Change in Control” shall mean the occurrence after June 1, 2015 of one or more of the following: (i) any one person or more than one person acting as a group (as provided in Code Section 409A) other than Parent or any of its affiliates (such person or group, an “Acquiring Person”) acquires ownership of the Company’s stock that, together with stock previously held by the Acquiring Person, constitutes more than 50% of the total fair market value or more than 50% of the total voting power of the Company, or (ii) an Acquiring Person acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Acquiring Person) assets from the Company that have a total gross fair market value equal to or more than 80% of the total gross fair market value of the Company’s assets immediately before such acquisition or acquisitions.

“Code” shall mean the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder.

“Committee” shall mean the Compensation and Management Succession Committee of the Board (or such other committee of the Board as the Board shall designate from time to time) or any subcommittee thereof.

“Merger” means the merger of another subsidiary of Parent with and into the Company as of February 1, 2015.

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“Participant” shall mean each person (including you) employed by the Company, or a Subsidiary, who is selected by the Committee to receive a Restricted Unit Award under the 2015 Restricted Unit Provisions.

“Parent” shall mean The Dai-ichi Life Insurance Company, Limited.

“PL Tangible Book Value” shall mean the Company’s consolidated GAAP book value of equity less accumulated other comprehensive income, less goodwill created by the Merger (net of impairments), less other intangible assets created by the Merger (net of deferred taxes, accumulated amortization, and impairment), plus all dividends paid in excess of planned amounts during the vesting period, plus any lost income (determined based on the 30 year treasury rate) on dividends in excess of planned amounts (plus any management fee paid to the Parent).

“PL Tangible Book Value Per Unit” as of any date shall mean the quotient of (i) PL Tangible Book Value as of the most recent audited balance sheet date last preceding the date of determination divided by (ii) the Total PL Units as of the date of determination.

“Subsidiary” shall mean any corporation of which the Company possesses directly or indirectly fifty percent (50%) or more of the total combined voting power of all classes of stock of such corporation and any other business organization, regardless of form, in which the Company possesses directly or indirectly fifty percent (50%) or more of the total combined equity interests in such organization.

“Total PL Units” shall be the number of units equal to (i) the number of units determined by dividing (x) PL Tangible Book Value as of the most recent audited balance sheet date last preceding June 1, 2015 by (y) $100; plus (ii) the number of units determined by dividing (A) the dollar amount or value of any capital contribution made to the Company directly or indirectly by the Parent during the award period by (B) the PL Tangible Book Value Per Unit determined as of the date of the most recent audited balance sheet preceding the date the capital contribution is made.

2.Vesting and Payment of Restricted Units.

(a)General Vesting Rule.  Unless vested on an earlier date as provided in these 2015 Restricted Unit Provisions, 50% of your Restricted Units will vest on December 31, 2017, and the remaining 50% of your Restricted Units will vest on December 31, 2018, subject in each case to your continued employment through such date.

(b)Payment of Restricted Units.  Restricted Units that become vested in accordance with paragraph 2(a) shall be settled in cash not later than the March 15 immediately following the date as of which such Restricted Units become vested based on the Per-Unit Tangible Book Value.

3.Change in Control.  In the event of a Change in Control, all of your Restricted Units will immediately vest and shall be settled in cash, based on the Per-Unit Tangible Book

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Value, within 60 days following the date on which the Change in Control occurs.

4.Termination of Employment.

(a)Death, Disability or Normal Retirement.  If your employment is terminated by death, disability (as determined in accordance with generally applicable Company policies) or by retirement on or after normal retirement age under the terms of any retirement plan maintained by the Company or a Subsidiary, your Restricted Units will vest in full.

(b)Early Retirement.  Unless the Committee determines to provide for treatment that is more favorable to you on such terms and conditions as the Committee may determine, if your employment with the Company and its Subsidiaries terminates due to retirement before normal retirement age, a pro-rated portion of your Restricted Units will immediately vest. The portion of your Restricted Units that would otherwise have become vested based on employment through each of December 31, 2017 and December 31, 2018 will be separately calculated by multiplying (1) the number of unvested Restricted Units that would become vested at the applicable date by (2) a fraction, the numerator of which is the number of complete and partial calendar months between January 1, 2015 and your retirement date, and the denominator of which is (x) 36, in the case of the portion of the Restricted Units that would become vested at December 31, 2017, and (y) 48, in the case of the portion of the Restricted Units that would become vested at December 31, 2018.  Any Restricted Units that do not vest upon your early retirement pursuant to the preceding sentence will be forfeited.

(c)Involuntary Termination.  If your employment is involuntarily terminated by the Company, all of your Restricted Units will immediately vest unless, if your employment is involuntarily terminated by the Company prior to July 30, 2016, the Committee determines otherwise (and subject to such conditions as the Committee may determine).  Notwithstanding the foregoing, this provision shall not apply if your termination is for “Cause.”  For purposes of this award, “Cause” shall mean (1) your conviction or plea of nolo contendere to a felony; (2) an act or acts of extreme dishonesty or gross misconduct; or (3) violation of the Company’s Code of Business Conduct.

(d)Other Termination.  Unless the Committee determines to provide for treatment that is more favorable to you on such terms and conditions as the Committee may determine, if your employment is terminated for Cause prior to the date payment is made in respect of your Restricted Units under paragraph 2(b) or for any reason not set forth in paragraphs 4(a), (b) or (c) prior to the applicable vesting dates specified in paragraph 2(a), your unvested Restricted Units will be forfeited.

(e)Payment of Vested Restricted Units.  Any Restricted Units that become vested under this paragraph 4 by reason of your termination of employment prior to the date such Restricted Units would otherwise have become vested pursuant to paragraph 2(a) shall nonetheless be payable at the same time and in the same manner as they would have been paid under paragraph 2(b) if you had remained in the Company’s employment through each of the applicable dates specified in paragraph 2(a).

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5.Federal Income Tax Consequences.

(a)General.  The following description of the federal income tax consequences of the Restricted Units is based on currently applicable provisions of the Code, and is only a general summary.  The summary does not discuss state and local tax laws, which may differ from the federal tax law, or federal estate, gift and employment tax laws.  You are urged to consult with your own tax advisor regarding the application of the tax laws to your particular situation.

(b)Grant of Restricted Units.  This grant of Restricted Units will not subject you to federal income tax.

(c)Payment of Restricted Units.  You will recognize ordinary income for federal income tax purposes on the date the Restricted Units are earned and paid (the “Payment Date”), unless you have made an effective election under the Company’s Deferred Compensation Plan for Officers (“Deferred Compensation Plan”), as discussed in paragraph 5(d).  The amount of income recognized will be equal to the aggregate amount of cash paid.

(d)Deferred Compensation Plan.  You may elect to defer payment in respect of your vested Restricted Units, and the recognition of taxable income with respect to such payment, by making deferral elections under the Deferred Compensation Plan.  If you make effective deferral elections, you will recognize ordinary income when the amount derived from the deferred portion of your Restricted Units payment is paid from the Deferred Compensation Plan, in an amount equal to the amount of cash paid.

You will be provided with more information about this deferral opportunity and the Deferred Compensation Plan.

(e)ERISA.  This Restricted Unit Award is not qualified under Section 401(a) of the Code and is not subject to any of the provisions of the Employee Retirement Income Security Act of 1974.

6.Tax Withholding.  The Company will withhold from your Restricted Units payment (or your payment from the Deferred Compensation Plan, if you have made deferral elections under that plan in respect to your Restricted Units) an amount in cash sufficient to satisfy any applicable federal, state or local tax withholding obligation.

7.Non-transferability of Restricted Units.  Your Restricted Units may not be assigned, pledged, or otherwise transferred, except upon your death by the laws of intestacy or descent and distribution.

8.Beneficiary Designations.  You may name a beneficiary or beneficiaries (who must be members of your family and who may be named contingently or successively) with respect to your rights under your Restricted Unit Award (including the right to receive any payment in respect of Restricted Units after your death) by submitting a written beneficiary designation in a form acceptable to the Company.  Any such designation will be effective only

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when filed with the Company’s Chief Accounting Officer (or such other person as the Company may designate) before your date of death, and will (unless specifically set forth therein) revoke all prior designations.  If there is no beneficiary designation in effect on the date of your death, your beneficiary will be your surviving spouse or, if you have no surviving spouse, your estate.

9.Administration of the Award.  Restricted Unit Awards subject to these 2015 Restricted Unit Provisions shall be administered by the Committee, which shall have the authority to select the Participants, to determine the awards to be made to each Participant, and to determine the conditions subject to which awards will become payable under these 2015 Restricted Unit Provisions.  Notwithstanding anything else contained herein to the contrary, the Committee may delegate any and all of its duties and responsibilities in respect of all Participants other than the Chief Executive Officer and all members of the Company’s Performance and Accountability Committee to a committee of officers comprised of the Chief Executive Officer, the Chief Financial Officer, the Executive Vice President, General Counsel and the Senior Vice President, Chief Human Resources Officer.  In the event that, at any time any of the aforementioned offices shall be vacant (or the title associated with such position shall be changed), the person performing the duties of such position shall serve on such officer’s committee.

The Committee shall have full power to administer and interpret, and to adopt such rules and regulations consistent with the terms of, the 2015 Restricted Unit Provisions as the Committee deems necessary or advisable in order to carry out such provisions.  Except as otherwise provided herein, the Committee’s interpretation and construction of the 2015 Restricted Unit Provisions and its determination of any conditions applicable to Restricted Unit Awards or the granting of Restricted Unit Awards to specific Participants shall be conclusive and binding.

The Committee may employ such legal counsel, consultants and agents (including counsel or agents who are employees of the Company or a Subsidiary) as it may deem desirable for the administration of the 2015 Restricted Unit Provisions and may rely upon any opinion received from any such counsel, consultant or agent and any computation received from any such consultant or agent.  All expenses incurred in the administration of these 2015 Restricted Unit Provisions, including, without limitation, for the engagement of any counsel, consultant or agent, shall be paid by the Company.  No member or former member of the Board or the Committee shall be liable for any act, omission, interpretation, construction or determination made in connection with any Restricted Unit Awards under these 2015 Restricted Unit Provisions other than as a result of such individual’s willful misconduct.

10.Amendment.  By action of the Board or the Committee, the Company may from time to time amend, terminate or discontinue the 2015 Restricted Unit Provisions at any time, but no amendment, termination or discontinuance of these 2015 Restricted Unit Provisions will unfavorably affect any Restricted Unit Award previously granted.

11.Effect on Employment and Other Benefits.  Receipt of a Restricted Unit Award under the 2015 Restricted Unit Provisions does not give any Participant any right to receive awards in the future or to continue in the employ of the Company and its subsidiaries,

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and Restricted Unit Award recipients are subject to discipline and discharge in the same manner as any other employee.  Income recognized as a result of any payment in respect of Restricted Units will not be included in the formula for calculating benefits under the Company’s Pension, 401(k), and Disability Plans.

12.Cooperation in Litigation.  By accepting a Restricted Unit Award subject to these 2015 Restricted Unit Provisions, you agree that after your employment terminates (regardless of the reason), you will cooperate fully with the Company in connection with any current or future claims, lawsuits, arbitrations, proceedings, examinations, inquiries or investigations involving the Company that relate to your service with the Company.  This includes being available on reasonable notice for interviews and other communications with the Company’s counsel in connection with any such matter and appearing at the Company’s request (and without a subpoena) to be deposed or to give testimony.

13.Non-Solicitation Agreement.  By accepting a Restricted Unit Award subject to these 2015 Restricted Unit Provisions, you agree that for one year beginning on the date your employment terminates (regardless of the reason), you will not (directly or indirectly) hire, solicit for hire, or assist others in hiring or soliciting for hire, any employee of the Company or its subsidiaries (“Company Employees”).  This provision shall not apply if you worked in, or were a resident of, the state of California when your employment terminated.  This provision shall not prohibit you or a future employer of yours from hiring, soliciting for hire, or assisting others in hiring or soliciting for hire, any Company Employee who (1) responds to a general solicitation or advertisement that is not specifically directed to Company Employees, (2) is referred to you or your future employer by a search firm, employment agency or similar organization, or (3) directly or indirectly contacts you or your future employer on their own initiative and without having been solicited.

14.Trade Secrets; Solicitation of Customers.  By accepting a Restricted Unit Award subject to these 2015 Restricted Unit Provisions, you agree to permanently maintain the confidentiality of the Company’s “Trade Secrets.”  Trade Secrets shall include any trade secrets as defined by law, and shall specifically include information regarding customers and agents or prospective customers and agents; marketing and sales techniques, materials and information; records, documents and data; business practices, policies, procedures and strategies; product and pricing information; compensation arrangements; financial information; attorney-client communications; and any other confidential or proprietary information relating to the Company that is not available to the public.  (Information is not a Trade Secret, however, if it is available in the public domain, has been obtained from a source other than the Company, or has been lawfully obtained through means other than your employment relationship with the Company.)  In addition, by accepting a Restricted Unit Award subject to these 2015 Restricted Unit Provisions you agree that for one year beginning on the date your employment terminates (regardless of the reason), you will not — whether on your own behalf or on behalf of or in conjunction with any person or entity — use the Company’s Trade Secrets to solicit any business of the type conducted by the Company as of your termination date from any person or entity that was either (1) a customer or agent of the Company as of that date or (2) a prospective customer or agent contacted, called upon, or serviced by the Company during the twelve months before your termination date, or induce, promote, facilitate, or otherwise contribute to the

6

solicitation of such customers or agents or prospective customers or agents through the use of Trade Secrets.

15.Recovery of Damages by the Company.  You agree that if you were to violate any of paragraphs 12, 13, and 14 the amount of damages suffered by the Company would be difficult to determine.  Therefore, you agree that the Company will be entitled to recover liquidated damages from you equal to the amount of income that you realize under this Award (including all legally required withholdings) (or, if less, the portion thereof determined by the Committee) if the Committee reasonably determines in good faith that you violated any of paragraphs 12, 13, or 14.  All determinations under this paragraph shall be made by the Committee, acting reasonably and in good faith, and its determinations shall be final, binding and conclusive on you, the Company, and any other person or entity affected thereby.  This liquidated damages provision does not relinquish any equitable remedies and other claims for damages that the Company may have.

16.Acceptance of Award.  No action is required if you wish to accept your Restricted Unit Award.  If you wish to decline your Restricted Unit Award, you must provide the Company with notice of your decision on or before June 30, 2015 by writing or emailing Scott Adams, Protective Life Corporation, P. O. Box 2606, Birmingham, Alabama 35202 (Scott.Adams@Protective.com).

Questions regarding a Restricted Unit Award subject to these 2015 Restricted Unit Provisions and requests for additional information about the 2015 Restricted Unit Provisions or the Committee should be directed to Beth Hinson, Protective Life Corporation, P. O. Box 2606, Birmingham, Alabama 35202 (telephone (205) 268-3967, e-mail Beth.Hinson@Protective.com).  These 2015 Restricted Unit Provisions and your Award Letter contain the formal terms and conditions of your Award, and you should retain them for future reference.

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EX-31.(A)

Exhibit 31(a)

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, John D. Johns, certify that:

1.I have reviewed the Quarterly Report on Form 10-Q for the period ended June 30, 2015, of Protective Life Corporation;

2.Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 7, 2015
	/s/ John D. Johns
	Chairman of the Board,
	President and Chief Executive Officer

EX-31.(B)

Exhibit 31(b)

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Richard J. Bielen, certify that:

1.I have reviewed the Quarterly Report on Form 10-Q for the period ended June 30, 2015, of Protective Life Corporation;

2.Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  August 7, 2015
	/s/ Richard J. Bielen
	Vice Chairman and
	Chief Financial Officer

EX-32.(A)

Exhibit 32(a)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Protective Life Corporation (the “Company”) on Form 10-Q for the period ended June 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John D. Johns, Chairman of the Board, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ John D. Johns

Chairman of the Board,

President and Chief Executive Officer

August 7, 2015

This certification accompanies the Report pursuant to §906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

EX-32.(B)

Exhibit 32(b)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Protective Life Corporation (the “Company”) on Form 10-Q for the period ended June 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard J. Bielen, Vice Chairman and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Richard J. Bielen

Vice Chairman and

Chief Financial Officer

August 7, 2015

This certification accompanies the Report pursuant to §906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

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EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2015

EARNINGS PER SHARE

Schedule of reconciliation of the numerators and denominators of the basic and diluted earnings per share

	Predecessor Company
	January 1, 2015		For The Three		For The Six
	to		Months Ended		Months Ended
	January 31, 2015		June 30, 2014		June 30, 2014
	(Dollars In Thousands, Except Per Share Amounts)
Calculation of basic earnings per share:
Net income	$	1,509	$	107,977	$	191,616
Average shares issued and outstanding	79,343,253		78,852,583		78,740,416
Issuable under various deferred compensation plans	1,109,595		1,126,570		1,054,415
Weighted shares outstanding - basic	80,452,848		79,979,153		79,794,831
Per share:
Net income - basic	$	0.02	$	1.35	$	2.40
Calculation of diluted earnings per share:
Net income	$	1,509	$	107,977	$	191,616
Weighted shares outstanding - basic	80,452,848		79,979,153		79,794,831
Stock appreciation rights (“SARs”)	64,570		492,463		479,430
Issuable under various other stock-based compensation plans	935,382		716,327		641,411
Restricted stock units	306,487		258,334		245,128
Weighted shares outstanding - diluted	81,759,287		81,446,277		81,160,800
Per share:
Net income - diluted	$	0.02	$	1.33	$	2.36

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INVESTMENT OPERATIONS (Details 4) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended	12 Months Ended
	Jan. 31, 2015 USD ($)	Jun. 30, 2015 USD ($) position	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) position	Jun. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)	Mar. 31, 2015 USD ($)
Fair Value
Less Than 12 Months							$ 30,338,630
Total							30,338,630
Unrealized Loss
Less Than 12 Months							(2,200,988)
Total							$ (2,200,988)
Total positions that were in an unrealized loss position | position		2,435		2,435
Available-for-sale securities, fair value		$ 33,890,884		$ 33,890,884
Available-for-sale securities, amortized cost		36,030,697		36,030,697
Below investment grade
Unrealized Loss
Available-for-sale securities, fair value		1,600,000		1,600,000
Available-for-sale securities, amortized cost		1,600,000		1,600,000
Securities in trading portfolio		308,800		308,800
Securities Not publicly traded		403,300		403,300
Fixed maturities
Unrealized Loss
Available-for-sale securities, fair value		33,015,877		33,015,877
Available-for-sale securities, amortized cost		35,144,095		35,144,095
Securities in trading portfolio		2,700,000		2,700,000
Change in unrealized gains (losses), net of income tax		(1,040,143)		(1,383,342)
Residential mortgage-backed securities
Fair Value
Less Than 12 Months		1,043,439		1,043,439
Total		1,043,439		1,043,439
Unrealized Loss
Less Than 12 Months		(23,585)		(23,585)
Total		(23,585)		(23,585)
Available-for-sale securities, fair value		1,576,826		1,576,826
Available-for-sale securities, amortized cost		1,594,167		1,594,167
Commercial mortgage-backed securities
Fair Value
Less Than 12 Months		1,125,342		1,125,342
Total		1,125,342		1,125,342
Unrealized Loss
Less Than 12 Months		(34,102)		(34,102)
Total		(34,102)		(34,102)
Available-for-sale securities, fair value		1,203,156		1,203,156
Available-for-sale securities, amortized cost		1,236,987		1,236,987
Other asset-backed securities
Fair Value
Less Than 12 Months		723,695		723,695
Total		723,695		723,695
Unrealized Loss
Less Than 12 Months		(22,940)		(22,940)
Total		(22,940)		(22,940)
Available-for-sale securities, fair value		799,471		799,471
Available-for-sale securities, amortized cost		820,349		820,349
U.S. government-related securities.
Fair Value
Less Than 12 Months		1,569,203		1,569,203
Total		1,569,203		1,569,203
Unrealized Loss
Less Than 12 Months		(42,983)		(42,983)
Total		(42,983)		(42,983)
Available-for-sale securities, fair value		1,601,530		1,601,530
Available-for-sale securities, amortized cost		1,644,086		1,644,086
Other government-related securities
Fair Value
Less Than 12 Months		18,782		18,782
Total		18,782		18,782
Unrealized Loss
Less Than 12 Months		(796)		(796)
Total		(796)		(796)
Available-for-sale securities, fair value		18,782		18,782
Available-for-sale securities, amortized cost		19,578		19,578
States, municipals, and political subdivisions
Fair Value
Less Than 12 Months		1,583,913		1,583,913
Total		1,583,913		1,583,913
Unrealized Loss
Less Than 12 Months		(135,050)		(135,050)
Total		(135,050)		(135,050)
Available-for-sale securities, fair value		1,585,068		1,585,068
Available-for-sale securities, amortized cost		1,720,059		1,720,059
Corporate securities
Fair Value
Less Than 12 Months		23,716,026		23,716,026
Total		23,716,026		23,716,026
Unrealized Loss
Less Than 12 Months		(1,926,339)		(1,926,339)
Total		(1,926,339)		(1,926,339)
Available-for-sale securities, fair value		26,169,377		26,169,377
Available-for-sale securities, amortized cost		28,044,507		28,044,507
Preferred stock
Fair Value
Less Than 12 Months		61,667		61,667
Total		61,667		61,667
Unrealized Loss
Less Than 12 Months		(2,695)		(2,695)
Total		(2,695)		(2,695)
Available-for-sale securities, fair value		61,667		61,667
Available-for-sale securities, amortized cost		64,362		64,362
Equity securities
Fair Value
Less Than 12 Months		496,563		496,563
Total		496,563		496,563
Unrealized Loss
Less Than 12 Months		(12,498)		(12,498)
Total		(12,498)		(12,498)
Available-for-sale securities, fair value		714,152		714,152
Available-for-sale securities, amortized cost		725,747		725,747
Securities in trading portfolio		8,300		8,300
Change in unrealized gains (losses), net of income tax		$ (9,048)		$ (7,537)
Predecessor
Fair Value
Less Than 12 Months						$ 2,235,384
12 Months or More						1,905,163
Total						4,140,547
Unrealized Loss
Less Than 12 Months						(96,929)
12 Months or More						(116,589)
Total						(213,518)
Available-for-sale securities, fair value						34,894,415
Available-for-sale securities, amortized cost						31,832,181
Predecessor | Fixed maturities
Unrealized Loss
Available-for-sale securities, fair value						33,957,169
Available-for-sale securities, amortized cost						30,919,422
Securities in trading portfolio						2,800,000
Change in unrealized gains (losses), net of income tax	$ 670,229		$ 519,745		$ 1,148,357
Predecessor | Residential mortgage-backed securities
Fair Value
Less Than 12 Months						166,271
12 Months or More						67,280
Total						233,551
Unrealized Loss
Less Than 12 Months						(9,562)
12 Months or More						(2,716)
Total						(12,278)
Available-for-sale securities, fair value						1,418,258
Available-for-sale securities, amortized cost						1,374,206
Predecessor | Commercial mortgage-backed securities
Fair Value
Less Than 12 Months						49,909
12 Months or More						102,529
Total						152,438
Unrealized Loss
Less Than 12 Months						(334)
12 Months or More						(2,030)
Total						(2,364)
Available-for-sale securities, fair value						1,177,252
Available-for-sale securities, amortized cost						1,119,979
Predecessor | Other asset-backed securities
Fair Value
Less Than 12 Months						108,666
12 Months or More						537,486
Total						646,152
Unrealized Loss
Less Than 12 Months						(6,473)
12 Months or More						(29,477)
Total						$ (35,950)
Percentage of underlying collateral of student-loan backed auction rate securities guaranteed by the Federal Family Education Loan Program ("FFELP"), minimum						97.00%
Available-for-sale securities, fair value						$ 839,376
Available-for-sale securities, amortized cost						857,441
Predecessor | U.S. government-related securities.
Fair Value
Less Than 12 Months						231,917
12 Months or More						280,803
Total						512,720
Unrealized Loss
Less Than 12 Months						(3,868)
12 Months or More						(5,414)
Total						(9,282)
Available-for-sale securities, fair value						1,428,895
Available-for-sale securities, amortized cost						1,394,028
Predecessor | Other government-related securities
Unrealized Loss
Available-for-sale securities, fair value						20,172
Available-for-sale securities, amortized cost						16,939
Predecessor | States, municipals, and political subdivisions
Fair Value
Less Than 12 Months						1,904
12 Months or More						10,482
Total						12,386
Unrealized Loss
Less Than 12 Months						(134)
12 Months or More						(297)
Total						(431)
Available-for-sale securities, fair value						1,687,689
Available-for-sale securities, amortized cost						1,391,526
Predecessor | Corporate securities
Fair Value
Less Than 12 Months						1,659,287
12 Months or More						776,864
Total						2,436,151
Unrealized Loss
Less Than 12 Months						(76,341)
12 Months or More						(62,690)
Total						(139,031)
Available-for-sale securities, fair value						27,385,527
Available-for-sale securities, amortized cost						24,765,303
Predecessor | Equity securities
Fair Value
Less Than 12 Months						17,430
12 Months or More						129,719
Total						147,149
Unrealized Loss
Less Than 12 Months						(217)
12 Months or More						(13,965)
Total						(14,182)
Available-for-sale securities, fair value						781,746
Available-for-sale securities, amortized cost						757,259
Securities in trading portfolio						$ 21,500
Change in unrealized gains (losses), net of income tax	$ 10,226		$ 14,591		$ 33,004

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DAI-ICHI MERGER (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 01, 2015	Jun. 30, 2015
Significant acquisitions
Goodwill	$ 735,700	$ 735,712
Assets
Goodwill	$ 735,700	$ 735,712
Protective Life Corporation | Dai-ichi Life
Significant acquisitions
Per share merger consideration (in dollars per share)	$ 70
Aggregate cash consideration	$ 5,600,000
Goodwill	735,712
Expected tax deductible goodwill	0
Assets
Fixed maturities	38,363,025
Equity securities	745,512
Mortgage loans	5,580,229
Investment real estate	7,456
Policy loans	1,751,872
Other long-term investments	686,507
Short-term investments	316,167
Total investments	47,450,768
Cash	462,710
Accrued investment income	484,021
Accounts and premiums receivable	112,182
Reinsurance receivables	5,724,020
Value of business acquired	1,276,886
Goodwill	735,712
Other intangibles	683,000
Property and equipment	104,364
Other assets	120,762
Income tax receivable	15,458
Assets related to separate accounts
Variable annuity	12,970,587
Variable universal life	819,188
Total assets	70,959,658
Liabilities
Future policy and benefit claims	30,195,841
Unearned premiums	682,183
Total policy liabilities and accruals	30,878,024
Stable value product account balances	1,932,277
Annuity account balances	10,941,661
Other policyholders' funds	1,388,083
Other liabilities	2,188,863
Deferred income taxes	1,535,556
Non-recourse funding obligation	621,798
Repurchase program borrowings	50,000
Debt	1,519,211
Subordinated debt securities	560,351
Liabilities related to separate accounts
Variable annuity	12,970,587
Variable universal life	819,188
Total liabilities	65,405,599
Net assets acquired	$ 5,554,059

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EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Calculation of basic earnings per share:
Net income		$ 63,840		$ 126,701
Calculation of diluted earnings per share:
Net income		$ 63,840		$ 126,701
Predecessor
Calculation of basic earnings per share:
Net income	$ 1,509		$ 107,977		$ 191,616
Average shares issued and outstanding	79,343,253		78,852,583		78,740,416
Issuable under various deferred compensation plans (in shares)	1,109,595		1,126,570		1,054,415
Weighted shares outstanding - basic	80,452,848		79,979,153		79,794,831
Per share:
Net income available to PLC's common shareowners - basic (in dollars per share)	$ 0.02		$ 1.35		$ 2.40
Calculation of diluted earnings per share:
Net income	$ 1,509		$ 107,977		$ 191,616
Weighted shares outstanding - basic	80,452,848		79,979,153		79,794,831
Stock appreciation rights ("SARs") (in shares)	64,570		492,463		479,430
Issuable under various other stock-based compensation plans (in shares)	935,382		716,327		641,411
Restricted stock units (in shares)	306,487		258,334		245,128
Weighted shares outstanding - diluted	81,759,287		81,446,277		81,160,800
Per share:
Net income available to PLC's common shareowners - diluted (in dollars per share)	$ 0.02		$ 1.33		$ 2.36

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INVESTMENT OPERATIONS (Details 5) - Red Mountain	6 Months Ended
	Jun. 30, 2015 USD ($) item	Dec. 31, 2014 item
Variable Interest Entities
Number of wholly owned subsidiaries that were determined to be VIEs	1
Ownership through an affiliate (as a percent)	100.00%
Risk of loss related to the VIE limited to the entity's investment | $	$ 10,000
Payments made | $	$ 0
Predecessor
Variable Interest Entities
Number of wholly owned subsidiaries that were determined to be VIEs		1

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DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Realized investment gains (losses) - all other investments
Modco trading portfolio		$ (108,741)		$ (141,901)
Predecessor
Realized investment gains (losses) - all other investments
Modco trading portfolio	$ 73,062		$ 60,989		$ 127,292

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Feb. 01, 2015	Dec. 31, 2014
Property and Equipment
Goodwill	$ 735,712	$ 735,700
Property and equipment
Total property and equipment, gross	106,756
Accumulated depreciation	3,658
Total property and equipment	$ 103,098
Home office building
Property and equipment
Useful life	25 years
Total property and equipment, gross	$ 65,127
Land
Property and equipment
Total property and equipment, gross	24,920
Data processing equipment
Property and equipment
Total property and equipment, gross	11,815
Other, principally furniture and equipment
Property and equipment
Total property and equipment, gross	$ 4,894
Predecessor
Property and Equipment
Goodwill			$ 102,365
Property and equipment
Total property and equipment, gross			171,340
Accumulated depreciation			118,487
Total property and equipment			52,853
Predecessor | Home office building
Property and equipment
Total property and equipment, gross			75,109
Predecessor | Data processing equipment
Property and equipment
Total property and equipment, gross			40,919
Predecessor | Other, principally furniture and equipment
Property and equipment
Total property and equipment, gross			$ 55,312

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INVESTMENT OPERATIONS (Tables)

6 Months Ended

Jun. 30, 2015

INVESTMENT OPERATIONS

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

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Fixed maturities	$	3,339		$	3,712		$	6,891		$	20,198		$	27,568
Equity securities	21			21			—			—			—
Impairments on fixed maturity securities	(5,734		)	(5,734		)	(481		)	(1,460		)	(3,051		)
Impairments on equity securities	—			—			—			—			—
Modco trading portfolio	(108,741		)	(141,901		)	73,062			60,989			127,292
Other investments	3,044			775			1,200			(1,039		)	(2,598		)
Total realized gains (losses) - investments	$	(108,071	)	$	(143,127	)	$	80,672		$	78,688		$	149,211

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

			Gross		Gross					Total OTTI
Successor Company	Amortized		Unrealized		Unrealized			Fair		Recognized
As of June 30, 2015	Cost		Gains		Losses			Value		in OCI(1)
			(Dollars In Thousands)
Fixed maturities:
Residential mortgage-backed securities	$	1,594,167	$	6,244	$	(23,585	)	$	1,576,826	$	—
Commercial mortgage-backed securities	1,236,987		271		(34,102		)	1,203,156		—
Other asset-backed securities	820,349		2,062		(22,940		)	799,471		—
U.S. government-related securities	1,644,086		427		(42,983		)	1,601,530		—
Other government-related securities	19,578		—		(796		)	18,782		—
States, municipals, and political subdivisions	1,720,059		59		(135,050		)	1,585,068		—
Corporate securities	28,044,507		51,209		(1,926,339		)	26,169,377		(7,024		)
Preferred stock	64,362		—		(2,695		)	61,667		—
	35,144,095		60,272		(2,188,490		)	33,015,877		(7,024		)
Equity securities	725,747		903		(12,498		)	714,152		—
Short-term investments	160,855		—		—			160,855		—
	$	36,030,697	$	61,175	$	(2,200,988	)	$	33,890,884	$	(7,024	)
Predecessor Company
As of December 31, 2014
Fixed maturities:
Residential mortgage-backed securities	$	1,374,206	$	56,330	$	(12,278	)	$	1,418,258	$	6,404
Commercial mortgage-backed securities	1,119,979		59,637		(2,364		)	1,177,252		—
Other asset-backed securities	857,441		17,885		(35,950		)	839,376		(95		)
U.S. government-related securities	1,394,028		44,149		(9,282		)	1,428,895		—
Other government-related securities	16,939		3,233		—			20,172		—
States, municipals, and political subdivisions	1,391,526		296,594		(431		)	1,687,689		—
Corporate securities	24,765,303		2,759,255		(139,031		)	27,385,527		—
	30,919,422		3,237,083		(199,336		)	33,957,169		6,309
Equity securities	757,259		38,669		(14,182		)	781,746		—
Short-term investments	155,500		—		—			155,500		—
	$	31,832,181	$	3,275,752	$	(213,518	)	$	34,894,415	$	6,309

(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
Successor Company	Amortized		Unrealized		Unrealized			Fair		Recognized
As of June 30, 2015	Cost		Gains		Losses			Value		in OCI
	(Dollars In Thousands)
Fixed maturities:
Other	$	565,334	$	—	$	(75,384	)	$	489,950	$	—
	$	565,334	$	—	$	(75,384	)	$	489,950	$	—

Predecessor Company
As of December 31, 2014
Fixed maturities:
Other	$	435,000	$	50,422	$	—	$	485,422	$	—
	$	435,000	$	50,422	$	—	$	485,422	$	—

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

	Successor Company
	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	$	849,305	$	849,114	$	—	$	—
Due after one year through five years	5,172,275		5,141,272		—		—
Due after five years through ten years	8,508,443		8,293,471		—		—
Due after ten years	20,614,072		18,732,020		565,334		489,950
	$	35,144,095	$	33,015,877	$	565,334	$	489,950

Schedule of available-for-sale credit losses on fixed maturities held by the Company for which a portion of other-than-temporary impairments were recognized in other comprehensive income (loss)

	Successor				Predecessor
	Company				Company
	For The Three		February 1, 2015		January 1, 2015		For The Three			For The Six
	Months Ended		to		to		Months Ended			Months Ended
	June 30, 2015		June 30, 2015		January 31, 2015		June 30, 2014			June 30, 2014
	(Dollars In Thousands)				(Dollars In Thousands)
Beginning balance	$	—	$	—	$	15,478	$	20,839		$	41,692
Additions for newly impaired securities	4,472		4,472		—		—			—
Additions for previously impaired securities	—		—		221		553			1,027
Reductions for previously impaired securities due to a change in expected cash flows	—		—		—		(3,407		)	(24,734		)
Reductions for previously impaired securities that were sold in the current period	—		—		—		—			—
Ending balance	$	4,472	$	4,472	$	15,699	$	17,985		$	17,985

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 June 30, 2015 (Successor Company):

	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	$	1,043,439	$	(23,585	)	$	—	$	—	$	1,043,439	$	(23,585	)
Commercial mortgage-backed securities	1,125,342		(34,102		)	—		—		1,125,342		(34,102		)
Other asset-backed securities	723,695		(22,940		)	—		—		723,695		(22,940		)
U.S. government-related securities	1,569,203		(42,983		)	—		—		1,569,203		(42,983		)
Other government-related securities	18,782		(796		)	—		—		18,782		(796		)
States, municipalities, and political subdivisions	1,583,913		(135,050		)	—		—		1,583,913		(135,050		)
Corporate securities	23,716,026		(1,926,339		)	—		—		23,716,026		(1,926,339		)
Preferred stock	61,667		(2,695		)	—		—		61,667		(2,695		)
Equities	496,563		(12,498		)	—		—		496,563		(12,498		)
	$	30,338,630	$	(2,200,988	)	$	—	$	—	$	30,338,630	$	(2,200,988	)

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 December 31, 2014 (Predecessor Company):

	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	$	166,271	$	(9,562	)	$	67,280	$	(2,716	)	$	233,551	$	(12,278	)
Commercial mortgage-backed securities	49,909		(334		)	102,529		(2,030		)	152,438		(2,364		)
Other asset-backed securities	108,666		(6,473		)	537,486		(29,477		)	646,152		(35,950		)
U.S. government-related securities	231,917		(3,868		)	280,803		(5,414		)	512,720		(9,282		)
Other government-related securities	—		—			—		—			—		—
States, municipalities, and political subdivisions	1,904		(134		)	10,482		(297		)	12,386		(431		)
Corporate securities	1,659,287		(76,341		)	776,864		(62,690		)	2,436,151		(139,031		)
Equities	17,430		(217		)	129,719		(13,965		)	147,149		(14,182		)
	$	2,235,384	$	(96,929	)	$	1,905,163	$	(116,589	)	$	4,140,547	$	(213,518	)

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

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015		For The Three		For The Six
	Months Ended			to			to		Months Ended		Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015		June 30, 2014		June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Fixed maturities	$	(1,040,143	)	$	(1,383,342	)	$	670,229	$	519,745	$	1,148,357
Equity securities	(9,048		)	(7,537		)	10,226		14,591		33,004

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DERIVATIVE FINANCIAL INSTRUMENTS (Details 3) - Cash flow hedges - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Gain (Loss) on Derivatives in Cash Flow Hedging Relationship
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion)		$ (95)		$ (131)
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)		(41)		(131)
Amount and Location of (Losses) Recognized in Income (Loss) on Derivatives (Ineffective Portion)		77		73
Inflation
Gain (Loss) on Derivatives in Cash Flow Hedging Relationship
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion)		(95)		(131)
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)		(41)		(131)
Amount and Location of (Losses) Recognized in Income (Loss) on Derivatives (Ineffective Portion)		$ 77		$ 73
Predecessor
Gain (Loss) on Derivatives in Cash Flow Hedging Relationship
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion)	$ 13		$ (929)		$ (26)
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	(36)		(614)		(1,284)
Amount and Location of (Losses) Recognized in Income (Loss) on Derivatives (Ineffective Portion)	(7)		(165)		(126)
Predecessor | Inflation
Gain (Loss) on Derivatives in Cash Flow Hedging Relationship
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion)	13		(929)		(26)
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	(36)		(614)		(1,284)
Amount and Location of (Losses) Recognized in Income (Loss) on Derivatives (Ineffective Portion)	$ (7)		$ (165)		$ (126)

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets:
Available-for-sale securities	$ 33,890,884
Total fixed maturity securities	35,762,609
Equity securities	722,457
Other long-term investments	394,947
Short-term investments	204,667
Assets related to separate accounts
Variable annuity	13,313,000
Variable universal life	859,114
Liabilities:
Other liabilities	518,571
Fixed maturities
Assets:
Available-for-sale securities	33,015,877
Trading securities	2,700,000
Residential mortgage-backed securities
Assets:
Available-for-sale securities	1,576,826
Commercial mortgage-backed securities
Assets:
Available-for-sale securities	1,203,156
Other asset-backed securities
Assets:
Available-for-sale securities	799,471
States, municipals, and political subdivisions
Assets:
Available-for-sale securities	1,585,068
Other government-related securities
Assets:
Available-for-sale securities	18,782
Corporate securities
Assets:
Available-for-sale securities	26,169,377
Preferred stock
Assets:
Available-for-sale securities	61,667
Level 3 | Other asset-backed securities
Assets:
Total investments	590,885
Level 3 | Corporate securities
Assets:
Total investments	1,084,954
Measured at fair value on a recurring basis | Level 1
Assets:
Total fixed maturity securities	1,397,279
Equity securities	641,429
Other long-term investments	109,761
Short-term investments	191,745
Total investments	2,340,214
Cash	568,776
Other assets	17,835
Assets related to separate accounts
Variable annuity	13,313,000
Variable universal life	859,114
Total assets	17,098,939
Liabilities:
Other liabilities	71,454
Total liabilities	71,454
Measured at fair value on a recurring basis | Level 1 | Fixed maturities
Assets:
Available-for-sale securities	1,153,279
Trading securities	244,000
Measured at fair value on a recurring basis | Level 1 | U.S. government-related securities
Assets:
Available-for-sale securities	1,091,530
Trading securities	236,424
Measured at fair value on a recurring basis | Level 1 | Corporate securities
Assets:
Available-for-sale securities	82
Measured at fair value on a recurring basis | Level 1 | Preferred stock
Assets:
Available-for-sale securities	61,667
Trading securities	7,576
Measured at fair value on a recurring basis | Level 2
Assets:
Total fixed maturity securities	32,483,101
Equity securities	11,308
Other long-term investments	115,590
Short-term investments	12,922
Total investments	32,622,921
Assets related to separate accounts
Total assets	32,622,921
Liabilities:
Other liabilities	19,352
Total liabilities	19,352
Measured at fair value on a recurring basis | Level 2 | Fixed maturities
Assets:
Available-for-sale securities	30,160,279
Trading securities	2,322,822
Measured at fair value on a recurring basis | Level 2 | Residential mortgage-backed securities
Assets:
Available-for-sale securities	1,576,823
Trading securities	298,138
Measured at fair value on a recurring basis | Level 2 | Commercial mortgage-backed securities
Assets:
Available-for-sale securities	1,203,156
Trading securities	146,314
Measured at fair value on a recurring basis | Level 2 | Other asset-backed securities
Assets:
Available-for-sale securities	208,586
Trading securities	108,837
Measured at fair value on a recurring basis | Level 2 | U.S. government-related securities
Assets:
Available-for-sale securities	510,000
Trading securities	4,840
Measured at fair value on a recurring basis | Level 2 | States, municipals, and political subdivisions
Assets:
Available-for-sale securities	1,585,068
Trading securities	307,411
Measured at fair value on a recurring basis | Level 2 | Other government-related securities
Assets:
Available-for-sale securities	18,782
Trading securities	58,090
Measured at fair value on a recurring basis | Level 2 | Corporate securities
Assets:
Available-for-sale securities	25,057,864
Trading securities	1,399,192
Measured at fair value on a recurring basis | Level 3
Assets:
Total fixed maturity securities	1,882,229
Equity securities	69,720
Other long-term investments	169,596
Total investments	2,121,545
Assets related to separate accounts
Total assets	2,121,545
Liabilities:
Annuity account balances	95,178
Other liabilities	427,765
Total liabilities	522,943
Measured at fair value on a recurring basis | Level 3 | Fixed maturities
Assets:
Available-for-sale securities	1,702,319
Trading securities	179,910
Measured at fair value on a recurring basis | Level 3 | Residential mortgage-backed securities
Assets:
Available-for-sale securities	3
Measured at fair value on a recurring basis | Level 3 | Other asset-backed securities
Assets:
Available-for-sale securities	590,885
Trading securities	160,594
Measured at fair value on a recurring basis | Level 3 | Corporate securities
Assets:
Available-for-sale securities	1,111,431
Trading securities	19,316
Measured at fair value on a recurring basis | Fair Values
Assets:
Total fixed maturity securities	35,762,609
Equity securities	722,457
Other long-term investments	394,947
Short-term investments	204,667
Total investments	37,084,680
Cash	568,776
Other assets	17,835
Assets related to separate accounts
Variable annuity	13,313,000
Variable universal life	859,114
Total assets	51,843,405
Liabilities:
Annuity account balances	95,178
Other liabilities	518,571
Total liabilities	613,749
Measured at fair value on a recurring basis | Fair Values | Fixed maturities
Assets:
Available-for-sale securities	33,015,877
Trading securities	2,746,732
Measured at fair value on a recurring basis | Fair Values | Residential mortgage-backed securities
Assets:
Available-for-sale securities	1,576,826
Trading securities	298,138
Measured at fair value on a recurring basis | Fair Values | Commercial mortgage-backed securities
Assets:
Available-for-sale securities	1,203,156
Trading securities	146,314
Measured at fair value on a recurring basis | Fair Values | Other asset-backed securities
Assets:
Available-for-sale securities	799,471
Trading securities	269,431
Measured at fair value on a recurring basis | Fair Values | U.S. government-related securities
Assets:
Available-for-sale securities	1,601,530
Trading securities	241,264
Measured at fair value on a recurring basis | Fair Values | States, municipals, and political subdivisions
Assets:
Available-for-sale securities	1,585,068
Trading securities	307,411
Measured at fair value on a recurring basis | Fair Values | Other government-related securities
Assets:
Available-for-sale securities	18,782
Trading securities	58,090
Measured at fair value on a recurring basis | Fair Values | Corporate securities
Assets:
Available-for-sale securities	26,169,377
Trading securities	1,418,508
Measured at fair value on a recurring basis | Fair Values | Preferred stock
Assets:
Available-for-sale securities	61,667
Trading securities	$ 7,576
Predecessor
Assets:
Available-for-sale securities		$ 34,894,415
Total fixed maturity securities		36,775,989
Equity securities		803,230
Other long-term investments		293,970
Short-term investments		250,645
Assets related to separate accounts
Variable annuity		13,157,429
Variable universal life		834,940
Liabilities:
Other liabilities		820,739
Predecessor | Fixed maturities
Assets:
Available-for-sale securities		33,957,169
Trading securities		2,800,000
Predecessor | Residential mortgage-backed securities
Assets:
Available-for-sale securities		1,418,258
Predecessor | Commercial mortgage-backed securities
Assets:
Available-for-sale securities		1,177,252
Predecessor | Other asset-backed securities
Assets:
Available-for-sale securities		839,376
Predecessor | States, municipals, and political subdivisions
Assets:
Available-for-sale securities		1,687,689
Predecessor | Other government-related securities
Assets:
Available-for-sale securities		20,172
Predecessor | Corporate securities
Assets:
Available-for-sale securities		27,385,527
Predecessor | Level 3 | Other asset-backed securities
Assets:
Total investments		563,752
Predecessor | Level 3 | Corporate securities
Assets:
Total investments		1,282,864
Predecessor | Measured at fair value on a recurring basis | Level 1
Assets:
Total fixed maturity securities		1,410,883
Equity securities		630,910
Other long-term investments		119,997
Short-term investments		244,100
Total investments		2,405,890
Cash		379,411
Other assets		11,669
Assets related to separate accounts
Variable annuity		13,157,429
Variable universal life		834,940
Total assets		16,789,339
Liabilities:
Other liabilities		62,146
Total liabilities		62,146
Predecessor | Measured at fair value on a recurring basis | Level 1 | Fixed maturities
Assets:
Available-for-sale securities		1,165,320
Trading securities		245,563
Predecessor | Measured at fair value on a recurring basis | Level 1 | U.S. government-related securities
Assets:
Available-for-sale securities		1,165,188
Trading securities		245,563
Predecessor | Measured at fair value on a recurring basis | Level 1 | Corporate securities
Assets:
Available-for-sale securities		132
Predecessor | Measured at fair value on a recurring basis | Level 2
Assets:
Total fixed maturity securities		33,277,579
Equity securities		99,266
Other long-term investments		106,079
Short-term investments		6,545
Total investments		33,489,469
Assets related to separate accounts
Total assets		33,489,469
Liabilities:
Other liabilities		3,741
Total liabilities		3,741
Predecessor | Measured at fair value on a recurring basis | Level 2 | Fixed maturities
Assets:
Available-for-sale securities		30,898,527
Trading securities		2,379,052
Predecessor | Measured at fair value on a recurring basis | Level 2 | Residential mortgage-backed securities
Assets:
Available-for-sale securities		1,418,255
Trading securities		288,114
Predecessor | Measured at fair value on a recurring basis | Level 2 | Commercial mortgage-backed securities
Assets:
Available-for-sale securities		1,177,252
Trading securities		151,111
Predecessor | Measured at fair value on a recurring basis | Level 2 | Other asset-backed securities
Assets:
Available-for-sale securities		275,415
Trading securities		105,118
Predecessor | Measured at fair value on a recurring basis | Level 2 | U.S. government-related securities
Assets:
Available-for-sale securities		263,707
Trading securities		4,898
Predecessor | Measured at fair value on a recurring basis | Level 2 | States, municipals, and political subdivisions
Assets:
Available-for-sale securities		1,684,014
Trading securities		325,446
Predecessor | Measured at fair value on a recurring basis | Level 2 | Other government-related securities
Assets:
Available-for-sale securities		20,172
Trading securities		57,032
Predecessor | Measured at fair value on a recurring basis | Level 2 | Corporate securities
Assets:
Available-for-sale securities		26,059,712
Trading securities		1,447,333
Predecessor | Measured at fair value on a recurring basis | Level 3
Assets:
Total fixed maturity securities		2,087,527
Equity securities		73,054
Other long-term investments		67,894
Total investments		2,228,475
Assets related to separate accounts
Total assets		2,228,475
Liabilities:
Annuity account balances		97,825
Other liabilities		754,852
Total liabilities		852,677
Predecessor | Measured at fair value on a recurring basis | Level 3 | Fixed maturities
Assets:
Available-for-sale securities		1,893,322
Trading securities		194,205
Predecessor | Measured at fair value on a recurring basis | Level 3 | Residential mortgage-backed securities
Assets:
Available-for-sale securities		3
Predecessor | Measured at fair value on a recurring basis | Level 3 | Other asset-backed securities
Assets:
Available-for-sale securities		563,961
Trading securities		169,461
Predecessor | Measured at fair value on a recurring basis | Level 3 | States, municipals, and political subdivisions
Assets:
Available-for-sale securities		3,675
Predecessor | Measured at fair value on a recurring basis | Level 3 | Corporate securities
Assets:
Available-for-sale securities		1,325,683
Trading securities		24,744
Predecessor | Measured at fair value on a recurring basis | Fair Values
Assets:
Total fixed maturity securities		36,775,989
Equity securities		803,230
Other long-term investments		293,970
Short-term investments		250,645
Total investments		38,123,834
Cash		379,411
Other assets		11,669
Assets related to separate accounts
Variable annuity		13,157,429
Variable universal life		834,940
Total assets		52,507,283
Liabilities:
Annuity account balances		97,825
Other liabilities		820,739
Total liabilities		918,564
Predecessor | Measured at fair value on a recurring basis | Fair Values | Fixed maturities
Assets:
Available-for-sale securities		33,957,169
Trading securities		2,818,820
Predecessor | Measured at fair value on a recurring basis | Fair Values | Residential mortgage-backed securities
Assets:
Available-for-sale securities		1,418,258
Trading securities		288,114
Predecessor | Measured at fair value on a recurring basis | Fair Values | Commercial mortgage-backed securities
Assets:
Available-for-sale securities		1,177,252
Trading securities		151,111
Predecessor | Measured at fair value on a recurring basis | Fair Values | Other asset-backed securities
Assets:
Available-for-sale securities		839,376
Trading securities		274,579
Predecessor | Measured at fair value on a recurring basis | Fair Values | U.S. government-related securities
Assets:
Available-for-sale securities		1,428,895
Trading securities		250,461
Predecessor | Measured at fair value on a recurring basis | Fair Values | States, municipals, and political subdivisions
Assets:
Available-for-sale securities		1,687,689
Trading securities		325,446
Predecessor | Measured at fair value on a recurring basis | Fair Values | Other government-related securities
Assets:
Available-for-sale securities		20,172
Trading securities		57,032
Predecessor | Measured at fair value on a recurring basis | Fair Values | Corporate securities
Assets:
Available-for-sale securities		27,385,527
Trading securities		$ 1,472,077

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MORTGAGE LOANS (Details 2)	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended		12 Months Ended
	Jan. 31, 2015 USD ($) loan	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) loan	Jun. 30, 2015 USD ($) item	Jun. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Change in the allowance for credit losses
Recoveries				$ (638,000)
Provision				1,173,000
Ending balance		$ 535,000		535,000	$ 535,000
Commercial mortgage loans
Mortgage loans
Mortgage loans having participation feature		548,400,000		548,400,000	548,400,000
Income recognized on participating mortgage loans		3,300,000		5,100,000
Nonperforming mortgage loans, foreclosed properties and restructured loans pursuant to pooling and servicing agreements		$ 4,200,000		$ 4,200,000	$ 4,200,000
Nonperforming mortgage loans, foreclosed properties and restructured loans to invested assets (as a percent)		0.01%		0.01%	0.01%
Assets accepted or agreed to be accepted on mortgage loans accounted for as troubled debt restructurings				$ 1,500,000
Principal amount of loans accounted for as troubled debt restructurings satisfied by acceptance of assets				2,000,000
Number of loan categories | item					2
Loans not subject to a pooling and servicing agreement which are either nonperforming, restructured, and/or foreclosed		$ 4,200,000		4,200,000	$ 4,200,000
Loans subject to a pooling and servicing agreement which are either nonperforming or restructured		$ 0		$ 0	$ 0
Number of nonperforming loans which have been restructured | loan				0
Commercial mortgage loans | Maximum
Mortgage loans
Loan-to-value ratio with participating interest (as a percent)		85.00%		85.00%	85.00%
Predecessor
Mortgage loans
Number of nonperforming loans which have been restructured | loan	0
Predecessor | Commercial mortgage loans
Mortgage loans
Mortgage loans having participation feature							$ 553,600,000
Income recognized on participating mortgage loans	$ 100,000		$ 2,800,000			$ 5,800,000
Assets accepted or agreed to be accepted on mortgage loans accounted for as troubled debt restructurings	11,300,000
Principal amount of loans accounted for as troubled debt restructurings satisfied by acceptance of assets	13,800,000
Change in the allowance for credit losses
Beginning balance	5,720,000			$ 2,500,000	$ 5,720,000	$ 3,130,000	3,130,000
Charge offs	(861,000)						(675,000)
Recoveries	(2,359,000)						(2,600,000)
Provision							5,865,000
Ending balance	$ 2,500,000						$ 5,720,000

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 4) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets:
Mortgage loans on real estate	$ 5,677,667
Policy loans	1,719,864
Fixed maturities, held-to-maturity	565,334
Liabilities:
Stable value product account balances	1,861,280
Annuity account balances	10,792,560
Debt:
Subordinated debt securities	452,424
Non-recourse funding obligations	656,299
Golden Gate V
Debt:
Non-recourse funding obligations	535,474
Carrying Amounts | Golden Gate V
Debt:
Non-recourse funding obligations	470,000
Fair Values | Golden Gate V
Debt:
Non-recourse funding obligations	469,700
Predecessor
Assets:
Mortgage loans on real estate		$ 5,133,780
Policy loans		1,758,237
Fixed maturities, held-to-maturity		435,000
Liabilities:
Stable value product account balances		1,959,488
Annuity account balances		10,950,729
Debt:
Subordinated debt securities		540,593
Non-recourse funding obligations		582,404
Predecessor | Carrying Amounts | Golden Gate V
Debt:
Non-recourse funding obligations		435,000
Predecessor | Fair Values | Golden Gate V
Debt:
Non-recourse funding obligations		461,400
Level 3 | Carrying Amounts
Assets:
Mortgage loans on real estate	5,677,667
Policy loans	1,719,864
Liabilities:
Stable value product account balances	1,861,280
Annuity account balances	10,792,560
Debt:
Bank borrowings	545,000
Non-recourse funding obligations	656,299
Level 3 | Carrying Amounts | Fixed maturities
Assets:
Fixed maturities, held-to-maturity	565,334
Level 3 | Fair Values
Assets:
Mortgage loans on real estate	5,542,878
Policy loans	1,719,864
Liabilities:
Stable value product account balances	1,859,409
Annuity account balances	10,260,654
Debt:
Bank borrowings	545,000
Non-recourse funding obligations	590,305
Level 3 | Fair Values | Fixed maturities
Assets:
Fixed maturities, held-to-maturity	489,950
Level 3 | Predecessor | Carrying Amounts
Assets:
Mortgage loans on real estate		5,133,780
Policy loans		1,758,237
Liabilities:
Stable value product account balances		1,959,488
Annuity account balances		10,950,729
Debt:
Bank borrowings		450,000
Non-recourse funding obligations		582,404
Level 3 | Predecessor | Carrying Amounts | Fixed maturities
Assets:
Fixed maturities, held-to-maturity		435,000
Level 3 | Predecessor | Fair Values
Assets:
Mortgage loans on real estate		5,524,059
Policy loans		1,758,237
Liabilities:
Stable value product account balances		1,973,624
Annuity account balances		10,491,775
Debt:
Bank borrowings		450,000
Non-recourse funding obligations		578,212
Level 3 | Predecessor | Fair Values | Fixed maturities
Assets:
Fixed maturities, held-to-maturity		458,422
Level 2 | Carrying Amounts
Debt:
Senior Notes	1,117,739
Subordinated debt securities	452,424
Level 2 | Fair Values
Debt:
Senior Notes	1,058,816
Subordinated debt securities	$ 445,760
Level 2 | Predecessor | Carrying Amounts
Debt:
Senior Notes		850,000
Subordinated debt securities		540,593
Level 2 | Predecessor | Fair Values
Debt:
Senior Notes		1,100,380
Subordinated debt securities		$ 552,098

XML

OFFSETTING OF ASSETS AND LIABILITIES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Liabilities	$ 90,805
Net Amounts of Liabilities Presented in the Statement of Financial Position	90,805
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments	53,905
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid	36,900
Total derivatives, not subject to a master netting arrangement or similar arrangement
Total derivatives, not subject to a master netting arrangement or similar arrangement	427,766
Total derivatives
Gross Amounts of Recognized Liabilities	518,571
Net Amounts of Liabilities Presented in the Statement of Financial Position	518,571
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments	53,905
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid	36,900
Total derivatives, Net Amount	427,766
Repurchase agreements
Repurchase agreements	602,213
Total Liabilities
Gross Amounts of Recognized Liabilities	1,120,784
Net Amounts of Liabilities Presented in the Statement of Financial Position	1,120,784
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments	53,905
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid	36,900
Net Amount	1,029,979
Free-Standing derivatives
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Liabilities	90,805
Net Amounts of Liabilities Presented in the Statement of Financial Position	90,805
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments	53,905
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid	36,900
Embedded derivative - Modco reinsurance treaties
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Liabilities	223,342
Net Amounts of Liabilities Presented in the Statement of Financial Position	223,342
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount	223,342
Embedded derivative - GMWB
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Liabilities	107,393
Net Amounts of Liabilities Presented in the Statement of Financial Position	107,393
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount	107,393
Embedded derivative - FIA
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Liabilities	85,129
Net Amounts of Liabilities Presented in the Statement of Financial Position	85,129
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount	85,129
Embedded derivative - IUL
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Liabilities	11,902
Net Amounts of Liabilities Presented in the Statement of Financial Position	11,902
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount	$ 11,902
Predecessor
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Liabilities		$ 65,887
Net Amounts of Liabilities Presented in the Statement of Financial Position		65,887
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments		53,612
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid		12,258
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount		17
Total derivatives, not subject to a master netting arrangement or similar arrangement
Total derivatives, not subject to a master netting arrangement or similar arrangement		754,852
Total derivatives
Gross Amounts of Recognized Liabilities		820,739
Net Amounts of Liabilities Presented in the Statement of Financial Position		820,739
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments		53,612
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid		12,258
Total derivatives, Net Amount		754,869
Repurchase agreements
Repurchase agreements		50,000
Total Liabilities
Gross Amounts of Recognized Liabilities		870,739
Net Amounts of Liabilities Presented in the Statement of Financial Position		870,739
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments		53,612
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid		12,258
Net Amount		804,869
Predecessor | Free-Standing derivatives
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Liabilities		65,887
Net Amounts of Liabilities Presented in the Statement of Financial Position		65,887
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments		53,612
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid		12,258
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount		17
Predecessor | Embedded derivative - Modco reinsurance treaties
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Liabilities		311,727
Net Amounts of Liabilities Presented in the Statement of Financial Position		311,727
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount		311,727
Predecessor | Embedded derivative - GMWB
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Liabilities		311,969
Net Amounts of Liabilities Presented in the Statement of Financial Position		311,969
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount		311,969
Predecessor | Embedded derivative - FIA
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Liabilities		124,465
Net Amounts of Liabilities Presented in the Statement of Financial Position		124,465
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount		124,465
Predecessor | Embedded derivative - IUL
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Liabilities		6,691
Net Amounts of Liabilities Presented in the Statement of Financial Position		6,691
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount		$ 6,691

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DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended
	Jan. 31, 2015 USD ($)	Jun. 30, 2015 USD ($) position	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) position	Jun. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		$ 94,603		$ 128,244
Notional Amount, Other long-term investments		10,969,301		10,969,301
Fair Value, Other long-term investments		394,947		394,947
Notional Amount, Other liabilities		10,399,489		10,399,489
Fair Value, Other liabilities		$ 518,571		$ 518,571
Cash flow hedges. | Interest rate swaps
Notional amount and fair value of the entity's derivative financial instruments
Positions held | position		0		0
Derivatives not designated as hedging instruments
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		$ 94,603		$ 128,244
Derivatives not designated as hedging instruments | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		(17,672)		(18,685)
Derivatives not designated as hedging instruments | FIA
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		1,664		3,644
Derivatives not designated as hedging instruments | IUL
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		1,469		1,880
Derivatives not designated as hedging instruments | Interest rate futures | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		(14,183)		(14,231)
Derivatives not designated as hedging instruments | Equity futures
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other long-term investments		646,935		646,935
Fair Value, Other long-term investments		7,906		7,906
Notional Amount, Other liabilities		10,289		10,289
Fair Value, Other liabilities		47		47
Derivatives not designated as hedging instruments | Equity futures | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		(5,267)		(37,736)
Derivatives not designated as hedging instruments | Equity futures | FIA
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		123		307
Derivatives not designated as hedging instruments | Equity futures | IUL
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		9		23
Derivatives not designated as hedging instruments | Currency futures
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other long-term investments		111,856		111,856
Fair Value, Other long-term investments		1,412		1,412
Notional Amount, Other liabilities		137,101		137,101
Fair Value, Other liabilities		2,021		2,021
Derivatives not designated as hedging instruments | Currency futures | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		(8,709)		(2,572)
Derivatives not designated as hedging instruments | Volatility futures | FIA
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		25		29
Derivatives not designated as hedging instruments | Equity options
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other long-term investments		2,695,658		2,695,658
Fair Value, Other long-term investments		186,051		186,051
Notional Amount, Other liabilities		1,255,872		1,255,872
Fair Value, Other liabilities		36,100		36,100
Derivatives not designated as hedging instruments | Equity options | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		(3,550)		(25,324)
Derivatives not designated as hedging instruments | Equity options | FIA
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		1,226		5,601
Derivatives not designated as hedging instruments | Equity options | IUL
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		(78)		62
Derivatives not designated as hedging instruments | Interest rate swaptions
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other long-term investments		225,000		225,000
Fair Value, Other long-term investments		8,237		8,237
Derivatives not designated as hedging instruments | Interest rate swaptions | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		2,547		(8,781)
Derivatives not designated as hedging instruments | Interest rate swaps
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other long-term investments		750,000		750,000
Fair Value, Other long-term investments		20,606		20,606
Notional Amount, Other liabilities		1,225,000		1,225,000
Fair Value, Other liabilities		$ 49,179		$ 49,179
Positions held | position		0		0
Derivatives not designated as hedging instruments | Interest rate swaps | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		$ (121,167)		$ (175,958)
Derivatives not designated as hedging instruments | Embedded derivative - GMWB
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other long-term investments		6,028,811		6,028,811
Fair Value, Other long-term investments		167,275		167,275
Notional Amount, Other liabilities		4,057,354		4,057,354
Fair Value, Other liabilities		107,393		107,393
Derivatives not designated as hedging instruments | Embedded derivative - GMWB | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		132,657		245,917
Derivatives not designated as hedging instruments | Embedded derivative - FIA
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other liabilities		854,986		854,986
Fair Value, Other liabilities		85,129		85,129
Derivatives not designated as hedging instruments | Embedded derivative - FIA | FIA
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		290		(2,293)
Derivatives not designated as hedging instruments | Embedded derivative - IUL
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other liabilities		28,270		28,270
Fair Value, Other liabilities		11,902		11,902
Derivatives not designated as hedging instruments | Embedded derivative - IUL | IUL
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		1,538		1,795
Derivatives not designated as hedging instruments | Embedded derivative - Modco reinsurance treaties
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		109,131		141,322
Notional Amount, Other long-term investments		65,242		65,242
Fair Value, Other long-term investments		2,321		2,321
Notional Amount, Other liabilities		2,496,000		2,496,000
Fair Value, Other liabilities		223,342		223,342
Derivatives not designated as hedging instruments | Interest rate futures
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other long-term investments		445,008		445,008
Fair Value, Other long-term investments		795		795
Notional Amount, Other liabilities		334,067		334,067
Fair Value, Other liabilities		3,453		3,453
Derivatives not designated as hedging instruments | Other.
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross		11		83
Notional Amount, Other long-term investments		791		791
Fair Value, Other long-term investments		344		344
Notional Amount, Other liabilities		550		550
Fair Value, Other liabilities		$ 5		$ 5
Predecessor
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	$ (123,274)		$ (89,926)		$ (195,276)
Notional Amount, Other long-term investments						$ 7,178,906
Fair Value, Other long-term investments						293,970
Notional Amount, Other liabilities						11,763,048
Fair Value, Other liabilities						820,739
Predecessor | Cash flow hedges. | Inflation
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other liabilities						40,469
Fair Value, Other liabilities						142
Predecessor | Derivatives not designated as hedging instruments
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	(123,274)		(89,926)		(195,276)
Predecessor | Derivatives not designated as hedging instruments | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	(53,581)		(32,588)		(80,780)
Predecessor | Derivatives not designated as hedging instruments | FIA
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	(1,032)		(4,710)		(1,638)
Predecessor | Derivatives not designated as hedging instruments | IUL
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	(598)		(285)		(285)
Predecessor | Derivatives not designated as hedging instruments | Interest rate futures | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	1,413		6,548		10,798
Predecessor | Derivatives not designated as hedging instruments | Equity futures
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other long-term investments						26,483
Fair Value, Other long-term investments						427
Notional Amount, Other liabilities						385,256
Fair Value, Other liabilities						15,069
Predecessor | Derivatives not designated as hedging instruments | Equity futures | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	9,221		(7,259)		(9,910)
Predecessor | Derivatives not designated as hedging instruments | Equity futures | FIA
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	(184)		605		950
Predecessor | Derivatives not designated as hedging instruments | Equity futures | IUL
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	3
Predecessor | Derivatives not designated as hedging instruments | Currency futures
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other long-term investments						197,648
Fair Value, Other long-term investments						2,384
Predecessor | Derivatives not designated as hedging instruments | Currency futures | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	7,778		(2,887)		(4,165)
Predecessor | Derivatives not designated as hedging instruments | Volatility futures | FIA
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross			8		8
Predecessor | Derivatives not designated as hedging instruments | Variance swaps | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross			(823)		(2,673)
Predecessor | Derivatives not designated as hedging instruments | Equity options
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other long-term investments						1,921,167
Fair Value, Other long-term investments						163,212
Notional Amount, Other liabilities						699,295
Fair Value, Other liabilities						47,077
Predecessor | Derivatives not designated as hedging instruments | Equity options | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	3,047		(20,949)		(33,290)
Predecessor | Derivatives not designated as hedging instruments | Equity options | FIA
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	(2,617)		2,984		3,978
Predecessor | Derivatives not designated as hedging instruments | Equity options | IUL
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	(115)
Predecessor | Derivatives not designated as hedging instruments | Interest rate swaptions
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other long-term investments						625,000
Fair Value, Other long-term investments						8,012
Predecessor | Derivatives not designated as hedging instruments | Interest rate swaptions | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	9,268		(4,998)		(14,401)
Predecessor | Derivatives not designated as hedging instruments | Interest rate swaps
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other long-term investments						1,550,000
Fair Value, Other long-term investments						50,743
Notional Amount, Other liabilities						275,000
Fair Value, Other liabilities						3,599
Predecessor | Derivatives not designated as hedging instruments | Interest rate swaps | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	122,710		45,169		102,537
Predecessor | Derivatives not designated as hedging instruments | Embedded derivative - GMWB
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other long-term investments						2,804,629
Fair Value, Other long-term investments						66,843
Notional Amount, Other liabilities						7,038,228
Fair Value, Other liabilities						311,969
Predecessor | Derivatives not designated as hedging instruments | Embedded derivative - GMWB | Annuity account
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	(207,018)		(47,389)		(129,676)
Predecessor | Derivatives not designated as hedging instruments | Embedded derivative - FIA
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other liabilities						749,933
Fair Value, Other liabilities						124,465
Predecessor | Derivatives not designated as hedging instruments | Embedded derivative - FIA | FIA
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	1,769		(8,307)		(6,574)
Predecessor | Derivatives not designated as hedging instruments | Embedded derivative - IUL
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other liabilities						12,019
Fair Value, Other liabilities						6,691
Predecessor | Derivatives not designated as hedging instruments | Embedded derivative - IUL | IUL
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	(486)		(285)		(285)
Predecessor | Derivatives not designated as hedging instruments | Embedded derivative - Modco reinsurance treaties
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	(68,026)		(52,202)		(112,371)
Notional Amount, Other long-term investments						25,760
Fair Value, Other long-term investments						1,051
Notional Amount, Other liabilities						2,562,848
Fair Value, Other liabilities						311,727
Predecessor | Derivatives not designated as hedging instruments | Interest rate futures
Notional amount and fair value of the entity's derivative financial instruments
Notional Amount, Other long-term investments						27,977
Fair Value, Other long-term investments						938
Predecessor | Derivatives not designated as hedging instruments | Other.
Notional amount and fair value of the entity's derivative financial instruments
Realized investment gains (losses) - derivatives, gross	$ (37)		$ (141)		$ (202)
Notional Amount, Other long-term investments						242
Fair Value, Other long-term investments						$ 360

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INCOME TAXES (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Deferred income tax assets:
Loss and credit carryforwards	$ 74,720
Deferred compensation	231,732
Deferred policy acquisition costs	429,086
Premium on corporate debt	118,633
Unrealized loss on investments	483,439
Other	23,587
Valuation allowance	(2,053)
Deferred income tax	1,359,144
Deferred income tax liabilities:
Premium receivables and policy liabilities	128,645
VOBA and other intangibles	671,775
Invested assets (other than unrealized gains)	1,626,896
Deferred income tax liabilities	2,427,316
Net deferred income tax liability	$ (1,068,172)
Predecessor
Deferred income tax assets:
Loss and credit carryforwards		$ 516
Premium receivables and policy liabilities		95,298
Deferred compensation		194,223
Invested assets (other than unrealized gains)		63,901
Valuation allowance		(2,206)
Deferred income tax		351,732
Deferred income tax liabilities:
DAC and VOBA		1,078,533
Net unrealized gains (losses) on investments		799,123
Other		19,554
Deferred income tax liabilities		1,897,210
Net deferred income tax liability		$ (1,545,478)

XML

DERIVATIVE FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2015

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

16.DERIVATIVE FINANCIAL INSTRUMENTS

Types of Derivative Instruments and Derivative Strategies

The Company utilizes a risk management strategy that incorporates the use of derivative financial instruments to reduce exposure to certain risks, including but not limited to, interest rate risk, inflation risk, currency exchange risk, volatility risk, and equity market risk. These strategies are developed through the Company’s analysis of data from financial simulation models and other internal and industry sources, and are then incorporated into the Company’s risk management program.

Derivative instruments expose the Company to credit and market risk and could result in material changes from period to period. The Company attempts to minimize its credit risk by entering into transactions with highly rated counterparties. The Company manages the market risk by establishing and monitoring limits as to the types and degrees of risk that may be undertaken. The Company monitors its use of derivatives in connection with its overall asset/liability management programs and risk management strategies. In addition, all derivative programs are monitored by our risk management department.

Derivatives Related to Interest Rate Risk Management

Derivative instruments that are used as part of the Company’s interest rate risk management strategy include interest rate swaps, interest rate futures, interest rate caps, and interest rate swaptions. The Company’s inflation risk management strategy involves the use of swaps that requires the Company to pay a fixed rate and receive a floating rate that is based on changes in the Consumer Price Index (“CPI”).

Derivatives Related to Risk Mitigation of Certain Annuity Contracts

The Company may use the following types of derivative contracts to mitigate its exposure to certain guaranteed benefits related to VA, fixed indexed annuity, and indexed universal life contracts:

· Foreign Currency Futures

· Variance Swaps

· Interest Rate Futures

· Equity Options

· Equity Futures

· Credit Derivatives

· Interest Rate Swaps

· Interest Rate Swaptions

· Volatility Futures

· Volatility Options

· Total Return Swaps

Accounting for Derivative Instruments

The Company records its derivative financial instruments in the consolidated condensed balance sheet in “other long-term investments” and “other liabilities” in accordance with GAAP, which requires that all derivative instruments be recognized in the balance sheet at fair value. The change in the fair value of derivative financial instruments is reported either in the statement of income or in other comprehensive income (loss), depending upon whether it qualified for and also has been properly identified as being part of a hedging relationship, and also on the type of hedging relationship that exists.

For a derivative financial instrument to be accounted for as an accounting hedge, it must be identified and documented as such on the date of designation. For cash flow hedges, the effective portion of their realized gain or loss is reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged item impacts earnings. Any remaining gain or loss, the ineffective portion, is recognized in current earnings. For fair value hedge derivatives, their gain or loss as well as the offsetting loss or gain attributable to the hedged risk of the hedged item is recognized in current earnings. Effectiveness of the Company’s hedge relationships is assessed on a quarterly basis.

The Company reports changes in fair values of derivatives that are not part of a qualifying hedge relationship through earnings in the period of change. Changes in the fair value of derivatives that are recognized in current earnings are reported in “Realized investment gains (losses)—Derivative financial instruments”.

Derivative Instruments Designated and Qualifying as Hedging Instruments

Cash-Flow Hedges

· In connection with the issuance of inflation-adjusted funding agreements, the Company has entered into swaps to essentially convert the floating CPI-linked interest rate on these agreements to a fixed rate. The Company pays a fixed rate on the swap and receives a floating rate primarily determined by the period’s change in the CPI. The amounts that are received on the swaps are almost equal to the amounts that are paid on the agreements. None of these positions were held as of June 30, 2015 (Successor Company), as these funding agreements and correlating swaps matured in June of 2015.

Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments

The Company uses various other derivative instruments for risk management purposes that do not qualify for hedge accounting treatment. Changes in the fair value of these derivatives are recognized in earnings during the period of change.

Derivatives Related to Variable Annuity Contracts

· The Company uses equity, interest rate, currency, and volatility futures to mitigate the risk related to certain guaranteed minimum benefits, including GMWB, within its VA products. In general, the cost of such benefits varies with the level of equity and interest rate markets, foreign currency levels, and overall volatility.

· The Company uses equity options, variance swaps, and volatility options to mitigate the risk related to certain guaranteed minimum benefits, including GMWB, within its VA products. In general, the cost of such benefits varies with the level of equity markets and overall volatility.

· The Company uses interest rate swaps and interest rate swaptions to mitigate the risk related to certain guaranteed minimum benefits, including GMWB, within its VA products.

· The Company markets certain VA products with a GMWB rider. The GMWB component is considered an embedded derivative, not considered to be clearly and closely related to the host contract.

Derivatives Related to Fixed Annuity Contracts

· The Company uses equity, futures, and options to mitigate the risk within its fixed indexed annuity products. In general, the cost of such benefits varies with the level of equity and overall volatility.

· The Company uses equity options to mitigate the risk within its fixed indexed annuity products. In general, the cost of such benefits varies with the level of equity markets.

· The Company markets certain fixed indexed annuity products. The FIA component is considered an embedded derivative, not considered to be clearly and closely related to the host contract.

Derivatives Related to Indexed Universal Life Contracts

· The Company uses equity, futures, and options to mitigate the risk within its indexed universal life products. In general, the cost of such benefits varies with the level of equity markets.

· The Company markets certain IUL products. The IUL component is considered an embedded derivative, not considered to be clearly and closely related to the host contract.

Other Derivatives

· The Company uses certain interest rate swaps to mitigate the price volatility of fixed maturities. None of these positions were held as of June 30, 2015 (Successor Company).

· The Company uses various swaps and other types of derivatives to manage risk related to other exposures.

· The Company is involved in various modified coinsurance and funds withheld arrangements which contain embedded derivatives. Changes in their fair value are recorded in current period earnings. The investment portfolios that support the related modified coinsurance reserves and funds withheld arrangements had fair value changes which substantially offset the gains or losses on these embedded derivatives.

The following table sets forth realized investments gains and losses for the periods shown:

Realized investment gains (losses) - derivative financial instruments

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Derivatives related to VA contracts:
Interest rate futures - VA	$	(14,183	)	$	(14,231	)	$	1,413		$	6,548		$	10,798
Equity futures - VA	(5,267		)	(37,736		)	9,221			(7,259		)	(9,910		)
Currency futures - VA	(8,709		)	(2,572		)	7,778			(2,887		)	(4,165		)
Variance swaps - VA	—			—			—			(823		)	(2,673		)
Equity options - VA	(3,550		)	(25,324		)	3,047			(20,949		)	(33,290		)
Interest rate swaptions - VA	2,547			(8,781		)	9,268			(4,998		)	(14,401		)
Interest rate swaps - VA	(121,167		)	(175,958		)	122,710			45,169			102,537
Embedded derivative - GMWB	132,657			245,917			(207,018		)	(47,389		)	(129,676		)
Total derivatives related to VA contracts	(17,672		)	(18,685		)	(53,581		)	(32,588		)	(80,780		)
Derivatives related to FIA contracts:
Embedded derivative - FIA	290			(2,293		)	1,769			(8,307		)	(6,574		)
Equity futures - FIA	123			307			(184		)	605			950
Volatility futures - FIA	25			29			—			8			8
Equity options - FIA	1,226			5,601			(2,617		)	2,984			3,978
Total derivatives related to FIA contracts	1,664			3,644			(1,032		)	(4,710		)	(1,638		)
Derivatives related to IUL contracts:
Embedded derivative - IUL	1,538			1,795			(486		)	(285		)	(285		)
Equity futures - IUL	9			23			3			—			—
Equity options - IUL	(78		)	62			(115		)	—			—
Total derivatives related to IUL contracts	1,469			1,880			(598		)	(285		)	(285		)
Embedded derivative - Modco reinsurance treaties	109,131			141,322			(68,026		)	(52,202		)	(112,371		)
Other derivatives	11			83			(37		)	(141		)	(202		)
Total realized gains (losses) - derivatives	$	94,603		$	128,244		$	(123,274	)	$	(89,926	)	$	(195,276	)

The following table sets forth realized investments gains and losses for the Modco trading portfolio that is included in realized investment gains (losses) — all other investments.

Realized investment gains (losses) - all other investments

Successor

Predecessor

Company

Company

For The Three

February 1, 2015

January 1, 2015

For The Three

For The Six

Months Ended

to

to

Months Ended

Months Ended

June 30, 2015

June 30, 2015

January 31, 2015

June 30, 2014

June 30, 2014

(Dollars In Thousands)

(Dollars In Thousands)

Modco trading portfolio(1)

$

(108,741

)

$

(141,901

)

$

73,062

$

60,989

$

127,292

(1) The Company elected to include the use of alternate disclosures for trading activities.

The following table presents the components of the gain or loss on derivatives that qualify as a cash flow hedging relationship.

Gain (Loss) on Derivatives in Cash Flow Hedging Relationship

				Amount and Location of
	Amount of Gains (Losses)			Gains (Losses)
	Deferred in			Reclassified from			Amount and Location of
	Accumulated Other			Accumulated Other			(Losses) Recognized in
	Comprehensive Income			Comprehensive Income			Income (Loss) on
	(Loss) on Derivatives			(Loss) into Income (Loss)			Derivatives
	(Effective Portion)			(Effective Portion)			(Ineffective Portion)
				Benefits and settlement			Realized investment
Successor Company				expenses			gains (losses)
	(Dollars In Thousands)
For The Three Months Ended June 30, 2015
Inflation	$	(95	)	$	(41	)	$	77
Total	$	(95	)	$	(41	)	$	77
Successor Company
February 1, 2015 to June 30, 2015
Inflation	$	(131	)	$	(131	)	$	73
Total	$	(131	)	$	(131	)	$	73
Predecessor Company
January 1, 2015 to January 31, 2015
Inflation	$	13		$	(36	)	$	(7	)
Total	$	13		$	(36	)	$	(7	)
Predecessor Company
For The Three Months Ended June 30, 2014
Inflation	$	(929	)	$	(614	)	$	(165	)
Total	$	(929	)	$	(614	)	$	(165	)
Predecessor Company
For The Six Months Ended June 30, 2014
Inflation	$	(26	)	$	(1,284	)	$	(126	)
Total	$	(26	)	$	(1,284	)	$	(126	)

The table below present information about the nature and accounting treatment of the Company’s primary derivative financial instruments and the location in and effect on the consolidated condensed financial statements for the periods presented below:

	Successor				Predecessor
	Company				Company
	As of June 30, 2015				As of December 31, 2014
	Notional		Fair		Notional		Fair
	Amount		Value		Amount		Value
	(Dollars In Thousands)				(Dollars In Thousands)
Other long-term investments
Derivatives not designated as hedging instruments:
Interest rate swaps	$	750,000	$	20,606	$	1,550,000	$	50,743
Embedded derivative - Modco reinsurance treaties	65,242		2,321		25,760		1,051
Embedded derivative — GMWB	6,028,811		167,275		2,804,629		66,843
Interest rate futures	445,008		795		27,977		938
Equity futures	646,935		7,906		26,483		427
Currency futures	111,856		1,412		197,648		2,384
Equity options	2,695,658		186,051		1,921,167		163,212
Interest rate swaptions	225,000		8,237		625,000		8,012
Other	791		344		242		360
	$	10,969,301	$	394,947	$	7,178,906	$	293,970
Other liabilities
Cash flow hedges:
Inflation	$	—	$	—	$	40,469	$	142
Derivatives not designated as hedging instruments:
Interest rate swaps	1,225,000		49,179		275,000		3,599
Embedded derivative - Modco reinsurance treaties	2,496,000		223,342		2,562,848		311,727
Embedded derivative - GMWB	4,057,354		107,393		7,038,228		311,969
Embedded derivative - FIA	854,986		85,129		749,933		124,465
Embedded derivative - IUL	28,270		11,902		12,019		6,691
Interest rate futures	334,067		3,453		—		—
Equity futures	10,289		47		385,256		15,069
Currency futures	137,101		2,021		—		—
Equity options	1,255,872		36,100		699,295		47,077
Other	550		5		—		—
	$	10,399,489	$	518,571	$	11,763,048	$	820,739

The Company reclassified the remaining balance of its derivative financial instruments out of accumulated other comprehensive income (loss) into earnings during the three months ended June 30, 2015 (Successor Company) as these derivative financial instruments matured in June of 2015.

XML

MONY CLOSED BLOCK OF BUSINESS (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Closed block liabilities
Minimum amount an existing dividend policyholder obligation can be reduced to		$ 0
Future policy benefits, policyholders' account balances and other policyholder liabilities		6,062,552
Policyholder dividend obligation	$ 323,432	52,283		$ 323,432
Other liabilities		18,885
Total closed block liabilities		6,133,720
Closed block assets
Fixed maturities, available-for-sale, at fair value		4,424,934
Mortgage loans on real estate		345,678
Policy loans		755,692
Cash and other invested assets		34,511
Other assets		154,346
Total closed block assets		5,715,161
Excess of reported closed block liabilities over closed block assets		418,559
Future earnings to be recognized from closed block assets and closed block liabilities		418,559
Deferred tax benefit		0
Policyholder dividend obligation		166,434
Reconciliation of the policyholder dividend obligation
Policyholder dividend obligation, beginning of period				323,432
Applicable to net revenue (losses)				(15,096)
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation				(256,053)
Policyholder dividend obligation, end of period	323,432	52,283		52,283
Revenues
Premiums and other income		49,998	$ 53,073	81,669	$ 102,846
Net investment income (loss)		54,833	60,416	87,681	112,623
Net investment gains (losses)		2,216	1,086	2,850	6,105
Total revenues		107,047	114,575	172,200	221,574
Benefits and other deductions
Benefits and settlement expenses		98,975	103,209	154,746	199,535
Other operating expenses		263	383	474	90
Total benefits and other deductions		99,238	103,592	155,220	199,625
Net revenues before income taxes		7,809	10,983	16,980	21,949
Income tax expense		2,733	3,844	5,943	7,682
Net revenues		$ 5,076	7,139	11,037	14,267
Predecessor
Closed block liabilities
Future policy benefits, policyholders' account balances and other policyholder liabilities						$ 6,138,505
Policyholder dividend obligation	366,745		328,872	500,453	190,494	366,745
Other liabilities						53,838
Total closed block liabilities						6,559,088
Closed block assets
Fixed maturities, available-for-sale, at fair value						4,524,037
Equity securities, available-for-sale, at fair value						5,387
Mortgage loans on real estate						448,855
Policy loans						771,120
Cash and other invested assets						30,984
Other assets						221,270
Total closed block assets						6,001,653
Excess of reported closed block liabilities over closed block assets						557,435
Future earnings to be recognized from closed block assets and closed block liabilities						557,435
Deferred tax benefit						0
Policyholder dividend obligation						$ 106,886
Reconciliation of the policyholder dividend obligation
Policyholder dividend obligation, beginning of period	366,745			$ 500,453	190,494
Applicable to net revenue (losses)	(1,369)				(6,951)
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation	135,077				145,329
Policyholder dividend obligation, end of period	500,453		$ 328,872		$ 328,872
Revenues
Premiums and other income	15,065
Net investment income (loss)	19,107
Net investment gains (losses)	568
Total revenues	34,740
Benefits and other deductions
Benefits and settlement expenses	31,152
Total benefits and other deductions	31,152
Net revenues before income taxes	3,588
Income tax expense	1,256
Net revenues	$ 2,332

XML

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2015

DERIVATIVE FINANCIAL INSTRUMENTS

Schedule of realized investments gains and losses

Realized investment gains (losses) - derivative financial instruments

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Derivatives related to VA contracts:
Interest rate futures - VA	$	(14,183	)	$	(14,231	)	$	1,413		$	6,548		$	10,798
Equity futures - VA	(5,267		)	(37,736		)	9,221			(7,259		)	(9,910		)
Currency futures - VA	(8,709		)	(2,572		)	7,778			(2,887		)	(4,165		)
Variance swaps - VA	—			—			—			(823		)	(2,673		)
Equity options - VA	(3,550		)	(25,324		)	3,047			(20,949		)	(33,290		)
Interest rate swaptions - VA	2,547			(8,781		)	9,268			(4,998		)	(14,401		)
Interest rate swaps - VA	(121,167		)	(175,958		)	122,710			45,169			102,537
Embedded derivative - GMWB	132,657			245,917			(207,018		)	(47,389		)	(129,676		)
Total derivatives related to VA contracts	(17,672		)	(18,685		)	(53,581		)	(32,588		)	(80,780		)
Derivatives related to FIA contracts:
Embedded derivative - FIA	290			(2,293		)	1,769			(8,307		)	(6,574		)
Equity futures - FIA	123			307			(184		)	605			950
Volatility futures - FIA	25			29			—			8			8
Equity options - FIA	1,226			5,601			(2,617		)	2,984			3,978
Total derivatives related to FIA contracts	1,664			3,644			(1,032		)	(4,710		)	(1,638		)
Derivatives related to IUL contracts:
Embedded derivative - IUL	1,538			1,795			(486		)	(285		)	(285		)
Equity futures - IUL	9			23			3			—			—
Equity options - IUL	(78		)	62			(115		)	—			—
Total derivatives related to IUL contracts	1,469			1,880			(598		)	(285		)	(285		)
Embedded derivative - Modco reinsurance treaties	109,131			141,322			(68,026		)	(52,202		)	(112,371		)
Other derivatives	11			83			(37		)	(141		)	(202		)
Total realized gains (losses) - derivatives	$	94,603		$	128,244		$	(123,274	)	$	(89,926	)	$	(195,276	)

Schedule of realized investments gains and losses for Modco trading portfolio that is included in realized investment gains (losses) - all other investments

Realized investment gains (losses) - all other investments

Successor

Predecessor

Company

Company

For The Three

February 1, 2015

January 1, 2015

For The Three

For The Six

Months Ended

to

to

Months Ended

Months Ended

June 30, 2015

June 30, 2015

January 31, 2015

June 30, 2014

June 30, 2014

(Dollars In Thousands)

(Dollars In Thousands)

Modco trading portfolio(1)

$

(108,741

)

$

(141,901

)

$

73,062

$

60,989

$

127,292

(1) The Company elected to include the use of alternate disclosures for trading activities.

Schedule of components of the gain or loss on derivatives that qualify as a cash flow hedging relationship

Gain (Loss) on Derivatives in Cash Flow Hedging Relationship

				Amount and Location of
	Amount of Gains (Losses)			Gains (Losses)
	Deferred in			Reclassified from			Amount and Location of
	Accumulated Other			Accumulated Other			(Losses) Recognized in
	Comprehensive Income			Comprehensive Income			Income (Loss) on
	(Loss) on Derivatives			(Loss) into Income (Loss)			Derivatives
	(Effective Portion)			(Effective Portion)			(Ineffective Portion)
				Benefits and settlement			Realized investment
Successor Company				expenses			gains (losses)
	(Dollars In Thousands)
For The Three Months Ended June 30, 2015
Inflation	$	(95	)	$	(41	)	$	77
Total	$	(95	)	$	(41	)	$	77
Successor Company
February 1, 2015 to June 30, 2015
Inflation	$	(131	)	$	(131	)	$	73
Total	$	(131	)	$	(131	)	$	73
Predecessor Company
January 1, 2015 to January 31, 2015
Inflation	$	13		$	(36	)	$	(7	)
Total	$	13		$	(36	)	$	(7	)
Predecessor Company
For The Three Months Ended June 30, 2014
Inflation	$	(929	)	$	(614	)	$	(165	)
Total	$	(929	)	$	(614	)	$	(165	)
Predecessor Company
For The Six Months Ended June 30, 2014
Inflation	$	(26	)	$	(1,284	)	$	(126	)
Total	$	(26	)	$	(1,284	)	$	(126	)

Schedule of information about the nature and accounting treatment of the Company's primary derivative financial instruments and the location in and effect on the consolidated financial statements

	Successor				Predecessor
	Company				Company
	As of June 30, 2015				As of December 31, 2014
	Notional		Fair		Notional		Fair
	Amount		Value		Amount		Value
	(Dollars In Thousands)				(Dollars In Thousands)
Other long-term investments
Derivatives not designated as hedging instruments:
Interest rate swaps	$	750,000	$	20,606	$	1,550,000	$	50,743
Embedded derivative - Modco reinsurance treaties	65,242		2,321		25,760		1,051
Embedded derivative — GMWB	6,028,811		167,275		2,804,629		66,843
Interest rate futures	445,008		795		27,977		938
Equity futures	646,935		7,906		26,483		427
Currency futures	111,856		1,412		197,648		2,384
Equity options	2,695,658		186,051		1,921,167		163,212
Interest rate swaptions	225,000		8,237		625,000		8,012
Other	791		344		242		360
	$	10,969,301	$	394,947	$	7,178,906	$	293,970
Other liabilities
Cash flow hedges:
Inflation	$	—	$	—	$	40,469	$	142
Derivatives not designated as hedging instruments:
Interest rate swaps	1,225,000		49,179		275,000		3,599
Embedded derivative - Modco reinsurance treaties	2,496,000		223,342		2,562,848		311,727
Embedded derivative - GMWB	4,057,354		107,393		7,038,228		311,969
Embedded derivative - FIA	854,986		85,129		749,933		124,465
Embedded derivative - IUL	28,270		11,902		12,019		6,691
Interest rate futures	334,067		3,453		—		—
Equity futures	10,289		47		385,256		15,069
Currency futures	137,101		2,021		—		—
Equity options	1,255,872		36,100		699,295		47,077
Other	550		5		—		—
	$	10,399,489	$	518,571	$	11,763,048	$	820,739

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 3) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Transfers
Securities transferred into Level 3		$ 0		$ 0
Securities transferred from level 3 to level 2		21,800		41,900
Transfers from Level 2 to Level 1		0		90,400
Transfers from Level 1		0		0
Predecessor
Transfers
Securities transferred into Level 3	$ 43,200		$ 1,300		$ 31,000
Securities transferred from level 3 to level 2	0		67,500		83,800
Transfers from Level 2 to Level 1	0		0		0
Transfers from Level 1	0		0		0
Level 3
Assets:
Beginning Balance		2,266,236		2,275,504
Total Realized and Unrealized Gains Included in Earnings		51,087		84,756
Total Realized and Unrealized Gains Included in Other Comprehensive Income		4,166		15,784
Total Realized and Unrealized Losses Included in Earnings		(6,185)		(6,271)
Total Realized and Unrealized Losses Included in Other Comprehensive Income		(33,570)		(37,138)
Purchases		89,929		111,929
Sales		(225,095)		(272,428)
Transfers in/or out of Level 3		(21,803)		(41,853)
Other		(3,220)		(8,738)
Ending Balance	2,275,504	2,121,545		2,121,545
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date		42,022		69,313
Liabilities:
Beginning Balance		724,623		840,409
Total Realized and Unrealized Gains Included in Earnings		224,194		358,811
Total Realized and Unrealized Losses Included in Earnings		(25,355)		(45,990)
Issuances		72		86
Settlements		2,913		4,731
Ending Balance	840,409	522,943		522,943
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date		199,750		314,365
Level 3 | Annuity account
Liabilities:
Beginning Balance		97,108		98,279
Total Realized and Unrealized Losses Included in Earnings		(911)		(1,544)
Issuances		72		86
Settlements		2,913		4,731
Ending Balance	98,279	95,178		95,178
Level 3 | Other liabilities.
Liabilities:
Beginning Balance		627,515		742,130
Total Realized and Unrealized Gains Included in Earnings		224,194		358,811
Total Realized and Unrealized Losses Included in Earnings		(24,444)		(44,446)
Ending Balance	742,130	427,765		427,765
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date		199,750		314,365
Level 3 | Total investments
Assets:
Beginning Balance		2,266,236		2,275,504
Total Realized and Unrealized Gains Included in Earnings		51,087		84,756
Total Realized and Unrealized Gains Included in Other Comprehensive Income		4,166		15,784
Total Realized and Unrealized Losses Included in Earnings		(6,185)		(6,271)
Total Realized and Unrealized Losses Included in Other Comprehensive Income		(33,570)		(37,138)
Purchases		89,929		111,929
Sales		(225,095)		(272,428)
Transfers in/or out of Level 3		(21,803)		(41,853)
Other		(3,220)		(8,738)
Ending Balance	2,275,504	2,121,545		2,121,545
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date		42,022		69,313
Level 3 | Fixed maturities
Assets:
Beginning Balance		2,073,391		2,109,186
Total Realized and Unrealized Gains Included in Earnings		4,385		8,414
Total Realized and Unrealized Gains Included in Other Comprehensive Income		4,166		15,784
Total Realized and Unrealized Losses Included in Earnings		(6,185)		(6,251)
Total Realized and Unrealized Losses Included in Other Comprehensive Income		(33,570)		(37,138)
Purchases		89,929		111,929
Sales		(224,864)		(272,197)
Transfers in/or out of Level 3		(21,803)		(41,853)
Other		(3,220)		(5,645)
Ending Balance	2,109,186	1,882,229		1,882,229
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date		(4,680)		(7,009)
Level 3 | Fixed maturities | Available-for-sale securities.
Assets:
Beginning Balance		1,883,277		1,914,583
Total Realized and Unrealized Gains Included in Earnings		3,656		4,291
Total Realized and Unrealized Gains Included in Other Comprehensive Income		4,166		15,784
Total Realized and Unrealized Losses Included in Earnings		(779)		(779)
Total Realized and Unrealized Losses Included in Other Comprehensive Income		(33,570)		(37,138)
Purchases		89,929		111,929
Sales		(219,235)		(258,737)
Transfers in/or out of Level 3		(21,803)		(41,853)
Other		(3,322)		(5,761)
Ending Balance	1,914,583	1,702,319		1,702,319
Level 3 | Fixed maturities | Trading securities.
Assets:
Beginning Balance		190,114		194,603
Total Realized and Unrealized Gains Included in Earnings		729		4,123
Total Realized and Unrealized Losses Included in Earnings		(5,406)		(5,472)
Sales		(5,629)		(13,460)
Other		102		116
Ending Balance	194,603	179,910		179,910
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date		(4,680)		(7,009)
Level 3 | Residential mortgage-backed securities | Available-for-sale securities.
Assets:
Beginning Balance		3		3
Ending Balance	3	3		3
Level 3 | Other asset-backed securities | Available-for-sale securities.
Assets:
Beginning Balance		600,132		603,646
Total Realized and Unrealized Gains Included in Other Comprehensive Income		165		165
Total Realized and Unrealized Losses Included in Earnings		(92)		(92)
Total Realized and Unrealized Losses Included in Other Comprehensive Income		(9,323)		(12,891)
Sales		(87)		(127)
Other		90		184
Ending Balance	603,646	590,885		590,885
Level 3 | Other asset-backed securities | Trading securities.
Assets:
Beginning Balance		170,500		169,473
Total Realized and Unrealized Gains Included in Earnings		589		3,949
Total Realized and Unrealized Losses Included in Earnings		(5,173)		(5,173)
Sales		(5,468)		(7,876)
Other		146		221
Ending Balance	169,473	160,594		160,594
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date		(4,587)		(5,829)
Level 3 | States, municipals, and political subdivisions | Available-for-sale securities.
Assets:
Beginning Balance				3,675
Sales				(3,675)
Ending Balance	3,675
Level 3 | Corporate securities | Available-for-sale securities.
Assets:
Beginning Balance		1,283,142		1,307,259
Total Realized and Unrealized Gains Included in Earnings		3,656		4,291
Total Realized and Unrealized Gains Included in Other Comprehensive Income		4,001		15,619
Total Realized and Unrealized Losses Included in Earnings		(687)		(687)
Total Realized and Unrealized Losses Included in Other Comprehensive Income		(24,247)		(24,247)
Purchases		89,929		111,929
Sales		(219,148)		(254,935)
Transfers in/or out of Level 3		(21,803)		(41,853)
Other		(3,412)		(5,945)
Ending Balance	1,307,259	1,111,431		1,111,431
Level 3 | Corporate securities | Trading securities.
Assets:
Beginning Balance		19,614		25,130
Total Realized and Unrealized Gains Included in Earnings		140		174
Total Realized and Unrealized Losses Included in Earnings		(233)		(299)
Sales		(161)		(5,584)
Other		(44)		(105)
Ending Balance	25,130	19,316		19,316
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date		(93)		(1,180)
Level 3 | Equity securities
Assets:
Beginning Balance		69,951		73,044
Sales		(231)		(231)
Other				(3,093)
Ending Balance	73,044	69,720		69,720
Level 3 | Other long-term investments.
Assets:
Beginning Balance		122,894		93,274
Total Realized and Unrealized Gains Included in Earnings		46,702		76,342
Total Realized and Unrealized Losses Included in Earnings				(20)
Ending Balance	93,274	169,596		169,596
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date		$ 46,702		76,322
Level 3 | Predecessor
Assets:
Beginning Balance	2,228,475		2,577,118	2,224,975	2,591,641
Total Realized and Unrealized Gains Included in Earnings	1,941		6,778		8,943
Total Realized and Unrealized Gains Included in Other Comprehensive Income	12,282		58,165		89,546
Total Realized and Unrealized Losses Included in Earnings	(26,237)		(23,473)		(76,244)
Total Realized and Unrealized Losses Included in Other Comprehensive Income	(26,906)		(2,354)		(8,664)
Purchases			65,746		104,684
Sales	(7,586)		(102,317)		(141,330)
Transfers in/or out of Level 3	43,205		(66,228)		(52,771)
Other	(199)		(3,523)		(5,893)
Ending Balance	2,224,975		2,509,912		2,509,912
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date	(24,296)		(19,705)		(72,178)
Liabilities:
Beginning Balance	852,677		476,958	1,106,513	377,630
Total Realized and Unrealized Gains Included in Earnings	61		13		25
Total Realized and Unrealized Losses Included in Earnings	(254,309)		(115,109)		(217,265)
Issuances	7		63		175
Settlements	419		4,914		7,842
Ending Balance	1,106,513		587,203		587,203
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date	(253,712)		(113,382)		(214,117)
Level 3 | Predecessor | Annuity account
Liabilities:
Beginning Balance	97,825		105,593	97,949	107,000
Total Realized and Unrealized Losses Included in Earnings	(536)		(1,714)		(3,123)
Issuances	7		63		175
Settlements	419		4,914		7,842
Ending Balance	97,949		102,456		102,456
Level 3 | Predecessor | Other liabilities.
Liabilities:
Beginning Balance	754,852		371,365	1,008,564	270,630
Total Realized and Unrealized Gains Included in Earnings	61		13		25
Total Realized and Unrealized Losses Included in Earnings	(253,773)		(113,395)		(214,142)
Ending Balance	1,008,564		484,747		484,747
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date	(253,712)		(113,382)		(214,117)
Level 3 | Predecessor | Total investments
Assets:
Beginning Balance	2,228,475		2,577,118	2,224,975	2,591,641
Total Realized and Unrealized Gains Included in Earnings	1,941		6,778		8,943
Total Realized and Unrealized Gains Included in Other Comprehensive Income	12,282		58,165		89,546
Total Realized and Unrealized Losses Included in Earnings	(26,237)		(23,473)		(76,244)
Total Realized and Unrealized Losses Included in Other Comprehensive Income	(26,906)		(2,354)		(8,664)
Purchases			65,746		104,684
Sales	(7,586)		(102,317)		(141,330)
Transfers in/or out of Level 3	43,205		(66,228)		(52,771)
Other	(199)		(3,523)		(5,893)
Ending Balance	2,224,975		2,509,912		2,509,912
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date	(24,296)		(19,705)		(72,178)
Level 3 | Predecessor | Fixed maturities
Assets:
Beginning Balance	2,087,527		2,351,817	2,109,186	2,323,627
Total Realized and Unrealized Gains Included in Earnings	1,188		6,538		8,698
Total Realized and Unrealized Gains Included in Other Comprehensive Income	12,282		57,200		88,354
Total Realized and Unrealized Losses Included in Earnings	(335)		(2,726)		(3,167)
Total Realized and Unrealized Losses Included in Other Comprehensive Income	(26,896)		(2,354)		(8,498)
Purchases			65,746		95,133
Sales	(7,586)		(101,643)		(140,656)
Transfers in/or out of Level 3	43,205		(66,228)		(52,771)
Other	(199)		(3,523)		(5,893)
Ending Balance	2,109,186		2,304,827		2,304,827
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date	853		802		654
Level 3 | Predecessor | Fixed maturities | Available-for-sale securities.
Assets:
Beginning Balance	1,893,322		2,126,207	1,914,583	2,099,451
Total Realized and Unrealized Gains Included in Earnings			74		969
Total Realized and Unrealized Gains Included in Other Comprehensive Income	12,282		57,200		88,354
Total Realized and Unrealized Losses Included in Other Comprehensive Income	(26,896)		(2,354)		(8,498)
Purchases			60,845		90,232
Sales	(7,094)		(74,713)		(112,851)
Transfers in/or out of Level 3	43,205		(67,478)		(55,293)
Other	(236)		(3,702)		(6,285)
Ending Balance	1,914,583		2,096,079		2,096,079
Level 3 | Predecessor | Fixed maturities | Trading securities.
Assets:
Beginning Balance	194,205		225,610	194,603	224,176
Total Realized and Unrealized Gains Included in Earnings	1,188		6,464		7,729
Total Realized and Unrealized Losses Included in Earnings	(335)		(2,726)		(3,167)
Purchases			4,901		4,901
Sales	(492)		(26,930)		(27,805)
Transfers in/or out of Level 3			1,250		2,522
Other	37		179		392
Ending Balance	194,603		208,748		208,748
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date	853		802		654
Level 3 | Predecessor | Residential mortgage-backed securities | Available-for-sale securities.
Assets:
Beginning Balance	3		17	3	28
Sales			(7)		(18)
Ending Balance	3		10		10
Level 3 | Predecessor | Residential mortgage-backed securities | Trading securities.
Assets:
Purchases			842		842
Ending Balance			842		842
Level 3 | Predecessor | Other asset-backed securities | Available-for-sale securities.
Assets:
Beginning Balance	563,961		548,805	603,646	545,808
Total Realized and Unrealized Gains Included in Other Comprehensive Income			29,929		34,066
Total Realized and Unrealized Losses Included in Other Comprehensive Income	(3,867)		(104)		(1,233)
Sales	(32)		(9,534)		(9,794)
Transfers in/or out of Level 3	43,205
Other	379		(999)		(750)
Ending Balance	603,646		568,097		568,097
Level 3 | Predecessor | Other asset-backed securities | Trading securities.
Assets:
Beginning Balance	169,461		194,664	169,473	194,977
Total Realized and Unrealized Gains Included in Earnings	586		6,124		6,851
Total Realized and Unrealized Losses Included in Earnings	(139)		(2,686)		(3,114)
Sales	(472)		(21,883)		(22,695)
Other	37		167		367
Ending Balance	169,473		176,386		176,386
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date	447		522		654
Level 3 | Predecessor | States, municipals, and political subdivisions | Available-for-sale securities.
Assets:
Beginning Balance	3,675		3,675	3,675	3,675
Ending Balance	3,675		3,675		3,675
Level 3 | Predecessor | Corporate securities | Available-for-sale securities.
Assets:
Beginning Balance	1,325,683		1,573,710	1,307,259	1,549,940
Total Realized and Unrealized Gains Included in Earnings			74		969
Total Realized and Unrealized Gains Included in Other Comprehensive Income	12,282		27,271		54,288
Total Realized and Unrealized Losses Included in Other Comprehensive Income	(23,029)		(2,250)		(7,265)
Purchases			60,845		90,232
Sales	(7,062)		(65,172)		(103,039)
Transfers in/or out of Level 3			(67,478)		(55,293)
Other	(615)		(2,703)		(5,535)
Ending Balance	1,307,259		1,524,297		1,524,297
Level 3 | Predecessor | Corporate securities | Trading securities.
Assets:
Beginning Balance	24,744		30,946	25,130	29,199
Total Realized and Unrealized Gains Included in Earnings	602		340		878
Total Realized and Unrealized Losses Included in Earnings	(196)		(40)		(53)
Purchases			4,059		4,059
Sales	(20)		(5,047)		(5,110)
Transfers in/or out of Level 3			1,250		2,522
Other			12		25
Ending Balance	25,130		31,520		31,520
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date	406		280
Level 3 | Predecessor | Equity securities
Assets:
Beginning Balance	73,054		81,493	73,044	71,881
Total Realized and Unrealized Gains Included in Other Comprehensive Income			965		1,192
Total Realized and Unrealized Losses Included in Other Comprehensive Income	(10)				(166)
Purchases					9,551
Sales			(674)		(674)
Ending Balance	73,044		81,784		81,784
Level 3 | Predecessor | Other long-term investments.
Assets:
Beginning Balance	67,894		143,808	$ 42,745	196,133
Total Realized and Unrealized Gains Included in Earnings	753		240		245
Total Realized and Unrealized Losses Included in Earnings	(25,902)		(20,747)		(73,077)
Ending Balance	42,745		123,301		123,301
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date	$ (25,149)		$ (20,507)		$ (72,832)

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EMPLOYEE BENEFIT PLANS (Tables)

6 Months Ended

Jun. 30, 2015

EMPLOYEE BENEFIT PLANS

Components of the net periodic benefit cost of the Company's defined benefit pension plan and unfunded excess benefit plan

	Successor										Predecessor
	Company										Company
	For The Three					February 1, 2015					January 1, 2015					For The Three					For The Six
	Months Ended					to					to					Months Ended					Months Ended
	June 30, 2015					June 30, 2015					January 31, 2015					June 30, 2014					June 30, 2014
	Defined			Unfunded		Defined			Unfunded		Defined			Unfunded		Defined			Unfunded		Defined			Unfunded
	Benefit			Excess		Benefit			Excess		Benefit			Excess		Benefit			Excess		Benefit			Excess
	Pension			Benefit		Pension			Benefit		Pension			Benefit		Pension			Benefit		Pension			Benefit
	Plan			Plan		Plan			Plan		Plan			Plan		Plan			Plan		Plan			Plan
	(Dollars In Thousands)										(Dollars In Thousands)
Service cost — benefits earned during the period	$	2,973		$	333	$	4,955		$	555	$	974		$	95	$	2,227		$	226	$	4,454		$	452
Interest cost on projected benefit obligation	2,433			408		4,055			680		1,002			140		2,587			406		5,174			812
Expected return on plan assets	(3,642		)	—		(6,070		)	—		(1,293		)	—		(3,065		)	—		(6,130		)	—
Amortization of prior service cost	—			—		—			—		(33		)	1		(98		)	3		(196		)	6
Amortization of actuarial losses	—			—		—			—		668			138		1,576			321		3,152			642
Total net periodic benefit cost	$	1,764		$	741	$	2,940		$	1,235	$	1,318		$	374	$	3,227		$	956	$	6,454		$	1,912

Predecessor

EMPLOYEE BENEFIT PLANS

Schedule of benefit obligation, fair value of plan assets and the funded status of the Company's defined benefit pension plan and unfunded excess benefit plan

	Predecessor Company
	Defined Benefit						Unfunded Excess
	Pension Plan						Benefits Plan
	As of January 31, 2015			As of December 31, 2014			As of January 31, 2015			As of December 31, 2014
	(Dollars In Thousands)
Accumulated benefit obligation, end of period	$	262,290		$	249,453		$	49,251		$	47,368
Change in projected benefit obligation:
Projected benefit obligation at beginning of period	$	267,331		$	219,152		$	49,575		$	39,679
Service cost	974			9,411			95			954
Interest cost	1,002			10,493			140			1,696
Amendments	—			—			—			—
Actuarial (gain) or loss	12,384			38,110			1,555			9,153
Benefits paid	(592		)	(9,835		)	(122		)	(1,907		)
Projected benefit obligation at end of period	281,099			267,331			51,243			49,575
Change in plan assets:
Fair value of plan assets at beginning of period	203,772			180,173			—			—
Actual return on plan assets	(3,525		)	17,921			—			—
Employer contributions(1)	2,165			15,513			122			1,907
Benefits paid	(592		)	(9,835		)	(122		)	(1,907		)
Fair value of plan assets at end of period	201,820			203,772			—			—
After reflecting FASB guidance
Funded status	(79,279		)	(63,559		)	(51,243		)	(49,575		)
Amounts recognized in the balance sheet:
Other liabilities	(79,279		)	(63,559		)	(51,243		)	(49,575		)
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss	96,965			80,430			22,401			20,983
Prior service cost/(credit)	(1,001		)	(1,033		)	23			24
Total amounts recognized in AOCI	$	95,964		$	79,397		$	22,424		$	21,007

(1) Employer contributions disclosed are based on the Company’s fiscal filing year.

Schedule of weighted-average assumptions used to determine benefit obligations

	Defined Benefit		Unfunded Excess		Postretirement
	Pension Plan		Benefit Plan		Life Insurance Plan
Discount rate	3.55	%	3.26	%	3.79	%

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INVESTMENT OPERATIONS (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Investments classified as available-for-sale
Amortized Cost	$ 36,030,697
Gross Unrealized Gains	61,175
Gross Unrealized Losses	(2,200,988)
Fair Value	33,890,884
Total OTTI Recognized in OCI	(7,024)
Investments classified as held-to-maturity
Fair Value	489,950
Fair Value
Fair Value	489,950
Fixed maturities
Investments classified as available-for-sale
Amortized Cost	35,144,095
Gross Unrealized Gains	60,272
Gross Unrealized Losses	(2,188,490)
Fair Value	33,015,877
Total OTTI Recognized in OCI	(7,024)
Investments classified as held-to-maturity
Amortized Cost	565,334
Gross Unrealized Losses	(75,384)
Fair Value	489,950
Trading securities	2,700,000
Amortized Cost
Due in one year or less	849,305
Due after one year through five years	5,172,275
Due after five years through ten years	8,508,443
Due after ten years	20,614,072
Total	35,144,095
Fair Value
Due in one year or less	849,114
Due after one year through five years	5,141,272
Due after five years through ten years	8,293,471
Due after ten years	18,732,020
Total	33,015,877
Amortized Cost
Due after ten years	565,334
Total	565,334
Fair Value
Due after ten years	489,950
Fair Value	489,950
Residential mortgage-backed securities
Investments classified as available-for-sale
Amortized Cost	1,594,167
Gross Unrealized Gains	6,244
Gross Unrealized Losses	(23,585)
Fair Value	1,576,826
Commercial mortgage-backed securities
Investments classified as available-for-sale
Amortized Cost	1,236,987
Gross Unrealized Gains	271
Gross Unrealized Losses	(34,102)
Fair Value	1,203,156
Other asset-backed securities
Investments classified as available-for-sale
Amortized Cost	820,349
Gross Unrealized Gains	2,062
Gross Unrealized Losses	(22,940)
Fair Value	799,471
U.S. government-related securities.
Investments classified as available-for-sale
Amortized Cost	1,644,086
Gross Unrealized Gains	427
Gross Unrealized Losses	(42,983)
Fair Value	1,601,530
Other government-related securities
Investments classified as available-for-sale
Amortized Cost	19,578
Gross Unrealized Losses	(796)
Fair Value	18,782
States, municipals, and political subdivisions
Investments classified as available-for-sale
Amortized Cost	1,720,059
Gross Unrealized Gains	59
Gross Unrealized Losses	(135,050)
Fair Value	1,585,068
Corporate securities
Investments classified as available-for-sale
Amortized Cost	28,044,507
Gross Unrealized Gains	51,209
Gross Unrealized Losses	(1,926,339)
Fair Value	26,169,377
Total OTTI Recognized in OCI	(7,024)
Preferred stock
Investments classified as available-for-sale
Amortized Cost	64,362
Gross Unrealized Losses	(2,695)
Fair Value	61,667
Other
Investments classified as held-to-maturity
Amortized Cost	565,334
Gross Unrealized Losses	(75,384)
Fair Value	489,950
Amortized Cost
Total	565,334
Fair Value
Fair Value	489,950
Equity securities
Investments classified as available-for-sale
Amortized Cost	725,747
Gross Unrealized Gains	903
Gross Unrealized Losses	(12,498)
Fair Value	714,152
Investments classified as held-to-maturity
Trading securities	8,300
Short-term investments
Investments classified as available-for-sale
Amortized Cost	160,855
Fair Value	160,855
Investments classified as held-to-maturity
Trading securities	$ 43,800
Predecessor
Investments classified as available-for-sale
Amortized Cost		$ 31,832,181
Gross Unrealized Gains		3,275,752
Gross Unrealized Losses		(213,518)
Fair Value		34,894,415
Total OTTI Recognized in OCI		6,309
Investments classified as held-to-maturity
Fair Value		485,422
Fair Value
Fair Value		485,422
Predecessor | Fixed maturities
Investments classified as available-for-sale
Amortized Cost		30,919,422
Gross Unrealized Gains		3,237,083
Gross Unrealized Losses		(199,336)
Fair Value		33,957,169
Total OTTI Recognized in OCI		6,309
Investments classified as held-to-maturity
Amortized Cost		435,000
Gross Unrealized Gains		50,422
Gross Unrealized Losses		0
Fair Value		485,422
Trading securities		2,800,000
Amortized Cost
Total		435,000
Fair Value
Fair Value		485,422
Predecessor | Residential mortgage-backed securities
Investments classified as available-for-sale
Amortized Cost		1,374,206
Gross Unrealized Gains		56,330
Gross Unrealized Losses		(12,278)
Fair Value		1,418,258
Total OTTI Recognized in OCI		6,404
Predecessor | Commercial mortgage-backed securities
Investments classified as available-for-sale
Amortized Cost		1,119,979
Gross Unrealized Gains		59,637
Gross Unrealized Losses		(2,364)
Fair Value		1,177,252
Predecessor | Other asset-backed securities
Investments classified as available-for-sale
Amortized Cost		857,441
Gross Unrealized Gains		17,885
Gross Unrealized Losses		(35,950)
Fair Value		839,376
Total OTTI Recognized in OCI		(95)
Predecessor | U.S. government-related securities.
Investments classified as available-for-sale
Amortized Cost		1,394,028
Gross Unrealized Gains		44,149
Gross Unrealized Losses		(9,282)
Fair Value		1,428,895
Predecessor | Other government-related securities
Investments classified as available-for-sale
Amortized Cost		16,939
Gross Unrealized Gains		3,233
Fair Value		20,172
Predecessor | States, municipals, and political subdivisions
Investments classified as available-for-sale
Amortized Cost		1,391,526
Gross Unrealized Gains		296,594
Gross Unrealized Losses		(431)
Fair Value		1,687,689
Predecessor | Corporate securities
Investments classified as available-for-sale
Amortized Cost		24,765,303
Gross Unrealized Gains		2,759,255
Gross Unrealized Losses		(139,031)
Fair Value		27,385,527
Predecessor | Other
Investments classified as held-to-maturity
Amortized Cost		435,000
Gross Unrealized Gains		50,422
Fair Value		485,422
Amortized Cost
Total		435,000
Fair Value
Fair Value		485,422
Predecessor | Equity securities
Investments classified as available-for-sale
Amortized Cost		757,259
Gross Unrealized Gains		38,669
Gross Unrealized Losses		(14,182)
Fair Value		781,746
Investments classified as held-to-maturity
Trading securities		21,500
Predecessor | Short-term investments
Investments classified as available-for-sale
Amortized Cost		155,500
Fair Value		155,500
Investments classified as held-to-maturity
Trading securities		$ 95,100

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EMPLOYEE BENEFIT PLANS (Details 2) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended	12 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Defined Benefit Pension Plan
Weighted-average assumptions used to determine benefit obligations
Service cost - benefits earned during the period		$ 2,973		$ 4,955
Interest cost on projected benefit obligation		2,433		4,055
Expected return on plan assets		(3,642)		(6,070)
Total net periodic benefit cost		1,764		$ 2,940
Defined Benefit Pension Plan | Minimum
Weighted-average assumptions used to determine benefit obligations
Adjusted funding target percentage to be maintained				80.00%
Unfunded Excess Benefits Plan
Weighted-average assumptions used to determine benefit obligations
Service cost - benefits earned during the period		333		$ 555
Interest cost on projected benefit obligation		408		680
Total net periodic benefit cost		$ 741		$ 1,235
Predecessor | Defined Benefit Pension Plan
Weighted-average assumptions used to determine benefit obligations
Discount rate (as a percent)	3.55%
Service cost - benefits earned during the period	$ 974		$ 2,227		$ 4,454	$ 9,411
Interest cost on projected benefit obligation	1,002		2,587		5,174	10,493
Expected return on plan assets	(1,293)		(3,065)		(6,130)
Amortization of prior service cost/(credit)	(33)		(98)		(196)
Amortization of actuarial losses	668		1,576		3,152
Total net periodic benefit cost	1,318		3,227		6,454
Contribution made by the company to its defined benefit pension plan for the plan year 2014	$ 2,200
Predecessor | Unfunded Excess Benefits Plan
Weighted-average assumptions used to determine benefit obligations
Discount rate (as a percent)	3.26%
Service cost - benefits earned during the period	$ 95		226		452	954
Interest cost on projected benefit obligation	140		406		812	$ 1,696
Amortization of prior service cost/(credit)	1		3		6
Amortization of actuarial losses	138		321		642
Total net periodic benefit cost	$ 374		$ 956		$ 1,912
Predecessor | Group life insurance plan
Weighted-average assumptions used to determine benefit obligations
Discount rate (as a percent)	3.79%

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DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED (Details) - USD ($) $ in Thousands	1 Months Ended	5 Months Ended	6 Months Ended	12 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Balances and changes in DAC
Capitalization of commissions, sales, and issue expenses		$ 130,346
Amortization		(7,750)
Change in unrealized investment gains and losses		4,073
Balance, end of period		126,669	$ 126,669
Balances and changes in VOBA
Balance, beginning of period		1,276,886
Amortization		(60,241)
Change in unrealized gains and losses		50,612
Balance, end of period	$ 1,276,886	1,267,257	1,267,257
Expected amortization of VOBA for the next five years
2015			75,180
2016			141,346
2017			131,356
2018			116,146
2019			97,272
Predecessor
Balances and changes in DAC
Balance, beginning of period	2,647,980	2,574,780	2,647,980	$ 2,721,687
Capitalization of commissions, sales, and issue expenses	22,513			288,592
Amortization	1,117			(195,605)
Change in unrealized investment gains and losses	(96,830)			(166,694)
Balance, end of period	2,574,780			2,647,980
Balances and changes in VOBA
Balance, beginning of period	646,590	$ 561,983	$ 646,590	848,528
Amortization	(5,189)			(61,704)
Change in unrealized gains and losses	(79,418)			(140,234)
Balance, end of period	$ 561,983			$ 646,590

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - Annuity account $ in Millions	Jun. 30, 2015 USD ($)
Guaranteed minimum withdrawal benefits (GMWB)
Guaranteed Minimum Withdrawal Benefits
Decrease In Liabilities For Guarantees On Long Duration Contracts Guaranteed Benefit Asset	$ 266.1
Guaranteed benefit asset, net	59.9
Guaranteed minimum death benefits (GMDB)
Policyholder Liabilities
GMBD reserve	$ 32.8

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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	1 Months Ended	5 Months Ended	6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities
Net income		$ 126,701
Adjustments to reconcile net income to net cash provided by operating activities:
Realized investment (gains) losses		14,883
Amortization of DAC and VOBA		67,991
Capitalization of deferred policy acquisition costs		(130,347)
Depreciation and amortization expense		20,922
Deferred income tax		16,056
Accrued income tax		117,041
Interest credited to universal life and investment products		422,093
Policy fees assessed on universal life and investment products		(491,769)
Change in reinsurance receivables		110,125
Change in accrued investment income and other receivables		15,831
Change in policy liabilities and other policyholders' funds of traditional life and health products		(153,073)
Trading securities:
Maturities and principal reductions of investments		40,104
Sale of investments		78,302
Cost of investments acquired		(135,770)
Other net change in trading securities		83,770
Amortization of premiums and accretion of discounts on investments and mortgage loans		177,658
Change in other liabilities		(228,189)
Other, net		(27,763)
Net cash provided by operating activities		124,566
Cash flows from investing activities
Maturities and principal reductions of investments, available-for-sale		202,371
Sale of investments, available-for-sale		2,051,567
Cost of investments acquired, available-for-sale		(2,593,859)
Change in investments, held-to-maturity		(35,000)
Mortgage loans:
New lendings		(637,908)
Repayments		510,580
Change in investment real estate, net		52
Change in policy loans, net		32,008
Change in other long-term investments, net		(154,537)
Change in short-term investments, net		34,946
Net unsettled security transactions		(46,266)
Purchase of property and equipment		(2,444)
Net cash (used in) provided by investing activities		(638,490)
Cash flows from financing activities
Borrowings under line of credit arrangements and debt		155,000
Principal payments on line of credit arrangement and debt		(119,399)
Issuance (repayment) of non-recourse funding obligations		35,000
Repurchase program borrowings		552,213
Investment product deposits and change in universal life deposits		1,222,581
Investment product withdrawals		(1,225,576)
Other financing activities, net		171
Net cash provided by (used in) financing activities		619,990
Change in cash		106,066
Cash at beginning of period		462,710
Cash at end of period	$ 462,710	568,776
Predecessor
Cash flows from operating activities
Net income	1,509		$ 191,616
Adjustments to reconcile net income to net cash provided by operating activities:
Realized investment (gains) losses	42,602		46,065
Amortization of DAC and VOBA	4,072		107,113
Capitalization of deferred policy acquisition costs	(22,489)		(136,561)
Depreciation and amortization expense	820		3,757
Deferred income tax	30,791		(30,728)
Accrued income tax	(32,803)		91,410
Interest credited to universal life and investment products	79,088		422,306
Policy fees assessed on universal life and investment products	(90,288)		(481,402)
Change in reinsurance receivables	(85,081)		42,403
Change in accrued investment income and other receivables	(5,789)		(16,821)
Change in policy liabilities and other policyholders' funds of traditional life and health products	176,980		83,825
Trading securities:
Maturities and principal reductions of investments	17,946		47,888
Sale of investments	26,422		112,473
Cost of investments acquired	(27,289)		(75,742)
Other net change in trading securities	(26,901)		(52,325)
Amortization of premiums and accretion of discounts on investments and mortgage loans	12,930		55,985
Change in other liabilities	238,592		104,961
Other income - gains on repurchase of non-recourse funding obligations			(4,587)
Other, net	(149,889)		(88,146)
Net cash provided by operating activities	191,223		423,490
Cash flows from investing activities
Maturities and principal reductions of investments, available-for-sale	59,028		656,492
Sale of investments, available-for-sale	191,062		768,785
Cost of investments acquired, available-for-sale	(149,887)		(2,071,692)
Change in investments, held-to-maturity			(35,000)
Mortgage loans:
New lendings	(100,530)		(351,505)
Repayments	45,741		547,698
Change in investment real estate, net	7		1,256
Change in policy loans, net	6,365		37,365
Change in other long-term investments, net	(25,339)		(73,387)
Change in short-term investments, net	(40,314)		(35,799)
Net unsettled security transactions	37,510		47,933
Purchase of property and equipment	(649)		(4,776)
Payments for business acquisitions			(906)
Net cash (used in) provided by investing activities	22,994		(513,536)
Cash flows from financing activities
Borrowings under line of credit arrangements and debt			90,000
Principal payments on line of credit arrangement and debt	(60,000)		(230,000)
Issuance (repayment) of non-recourse funding obligations			16,630
Repurchase program borrowings			70,490
Dividends to shareowners			(34,649)
Investment product deposits and change in universal life deposits	169,233		1,304,549
Investment product withdrawals	(240,147)		(1,232,428)
Other financing activities, net	(4)
Net cash provided by (used in) financing activities	(130,918)		(15,408)
Change in cash	83,299		(105,454)
Cash at beginning of period	379,411	$ 462,710	466,542
Cash at end of period	$ 462,710		$ 361,088

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GOODWILL (Details) - USD ($) $ in Thousands	1 Months Ended	2 Months Ended	3 Months Ended	5 Months Ended
	Jan. 31, 2015	Mar. 31, 2015	Jun. 30, 2015	Jun. 30, 2015	Feb. 01, 2015	Dec. 31, 2014
Changes in the carrying amount of goodwill
Goodwill.			$ 735,712	$ 735,712	$ 735,700
Decrease in goodwill balance				$ 0
Goodwill impairment		$ 0	$ 0
Predecessor
Changes in the carrying amount of goodwill
Goodwill.						$ 102,365
Decrease in goodwill balance	$ 300

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OFFSETTING OF ASSETS AND LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2015

OFFSETTING OF ASSETS AND LIABILITIES

Schedule of derivative instruments by assets

The tables below present the derivative instruments by assets and liabilities for the Company as of June 30, 2015 (Successor 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	$	225,011	$	—	$	225,011	$	53,905	$	77,148	$	93,958
Total derivatives, subject to a master netting arrangement or similar arrangement	225,011		—		225,011		53,905		77,148		93,958
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	2,321		—		2,321		—		—		2,321
Embedded derivative - GMWB	167,275		—		167,275		—		—		167,275
Other	340		—		340		—		—		340
Total derivatives, not subject to a master netting arrangement or similar arrangement	169,936		—		169,936		—		—		169,936
Total derivatives	394,947		—		394,947		53,905		77,148		263,894
Total Assets	$	394,947	$	—	$	394,947	$	53,905	$	77,148	$	263,894

The tables below present the derivative instruments by assets and liabilities for the Company as of December 31, 2014 (Predecessor 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	$	225,716	$	—	$	225,716	$	53,612	$	73,935	$	98,169
Total derivatives, subject to a master netting arrangement or similar arrangement	225,716		—		225,716		53,612		73,935		98,169
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	1,051		—		1,051		—		—		1,051
Embedded derivative - GMWB	66,843		—		66,843		—		—		66,843
Other	360		—		360		—		—		360
Total derivatives, not subject to a master netting arrangement or similar arrangement	68,254		—		68,254		—		—		68,254
Total derivatives	293,970		—		293,970		53,612		73,935		166,423
Total Assets	$	293,970	$	—	$	293,970	$	53,612	$	73,935	$	166,423

Schedule of derivative instruments by liabilities

The tables below present the derivative instruments by assets and liabilities for the Company as of June 30, 2015 (Successor Company):

					Net Amounts
			Gross		of Liabilities		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	$	90,805	$	—	$	90,805	$	53,905	$	36,900	$	—
Total derivatives, subject to a master netting arrangement or similar arrangement	90,805		—		90,805		53,905		36,900		—
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	223,342		—		223,342		—		—		223,342
Embedded derivative - GMWB	107,393		—		107,393		—		—		107,393
Embedded derivative - FIA	85,129		—		85,129		—		—		85,129
Embedded derivative - IUL	11,902		—		11,902		—		—		11,902
Total derivatives, not subject to a master netting arrangement or similar arrangement	427,766		—		427,766		—		—		427,766
Total derivatives	518,571		—		518,571		53,905		36,900		427,766
Repurchase agreements(1)	602,213		—		602,213		—		—		602,213
Total Liabilities	$	1,120,784	$	—	$	1,120,784	$	53,905	$	36,900	$	1,029,979

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

The tables below present the derivative instruments by assets and liabilities for the Company as of December 31, 2014 (Predecessor Company):

					Net Amounts
			Gross		of Liabilities		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	$	65,887	$	—	$	65,887	$	53,612	$	12,258	$	17
Total derivatives, subject to a master netting arrangement or similar arrangement	65,887		—		65,887		53,612		12,258		17
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	311,727		—		311,727		—		—		311,727
Embedded derivative - GMWB	311,969		—		311,969		—		—		311,969
Embedded derivative - FIA	124,465		—		124,465		—		—		124,465
Embedded derivative - IUL	6,691		—		6,691		—		—		6,691
Total derivatives, not subject to a master netting arrangement or similar arrangement	754,852		—		754,852		—		—		754,852
Total derivatives	820,739		—		820,739		53,612		12,258		754,869
Repurchase agreements(1)	50,000		—		50,000		—		—		50,000
Total Liabilities	$	870,739	$	—	$	870,739	$	53,612	$	12,258	$	804,869

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

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2015

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Intangible Assets

Intangible Assets

Intangible assets with definite lives are amortized over the estimated useful life of the asset. Amortizable intangible assets primarily consist of distribution relationships, trade names, and technology. Intangible assets with indefinite lives, primarily insurance licenses, are not amortized.

Value of Businesses Acquired

Value of Business Acquired

In conjunction with the Merger, a portion of the purchase price was allocated to the right to receive future gross profits from cash flows and earnings of the Company’s insurance policies and investment contracts as of the date of the Merger. This intangible asset, called value of business acquired (“VOBA”), is based on the actuarially estimated present value of future cash flows from the Company’s insurance policies and investment contracts in-force on the date of the Merger. The estimated present value of future cash flows used in the calculation of the VOBA is based on certain assumptions, including mortality, persistency, expenses, and interest rates that the Company expects to experience in future years. The Company amortizes VOBA in proportion to gross premiums for traditional life products, or estimated gross margins (“EGMs”) for participating traditional life products within the MONY block. For interest sensitive products, the Company uses various amortization bases including expected gross profits (“EGPs”), revenues, or insurance in-force.

Goodwill

Goodwill

Goodwill of $735.7 million was recognized in conjunction with the Merger as the excess of the purchase considerations over the fair value of identifiable assets acquired and liabilities assumed. The balance recognized as goodwill is not amortized, but is reviewed for impairment on an annual basis, or more frequently as events or circumstances may warrant, including those circumstances which would more likely than not reduce the fair value of the Company’s reporting units below its carrying amount.

Property and Equipment

Property and Equipment

In conjunction with the Merger, property and equipment was recorded at fair value and will be depreciated from this basis in future periods based on the respective estimated useful lives. Real estate assets were recorded at appraised values as of the acquisition date. The Company has estimated the remaining useful life of the home office building to be 25 years. Land is not depreciated.

The carrying amounts of the Company’s fixed assets are as follows

	Successor		Predecessor
	Company		Company
	As of		As of
	June 30, 2015		December 31, 2014
	(Dollars In Thousands)		(Dollars In Thousands)
Home office building	$	65,127	$	75,109
Land	24,920		—
Data processing equipment	11,815		40,919
Other, principally furniture and equipment	4,894		55,312
	106,756		171,340
Accumulated depreciation	3,658		118,487
Total property and equipment	$	103,098	$	52,853

Guaranteed Minimum Withdrawal Benefits

Guaranteed Minimum Withdrawal Benefits

The Company also establishes reserves for guaranteed minimum withdrawal benefits (“GMWB”) on its variable annuity (“VA”) products. The GMWB is valued in accordance with FASB guidance under the ASC Derivatives and Hedging Topic which utilizes the valuation technique prescribed by the ASC Fair Value Measurements and Disclosures Topic, which requires the embedded derivative to be recorded at fair value using current implied volatilities for the equity indices. The fair value of the GMWB is impacted by equity market conditions and can result in the GMWB embedded derivative being in an overall net asset or net liability position.  In times of favorable equity market conditions the likelihood and severity of claims is reduced and expected fee income increases.  Since claims are generally expected later than fees these favorable equity market conditions can result in the present value of fees being greater than the present value of claims which results in a net GMWB embedded derivative asset.  In times of unfavorable equity market conditions the likelihood and severity of claims is increased and expected fee income decreases and can result in the present value of claims exceeding the present value of fees resulting in a net GMWB embedded derivative liability. The methods used to estimate the embedded derivatives employ assumptions about mortality, lapses, policyholder behavior, equity market returns, interest rates, and market volatility. The Company assumes age-based mortality from the National Association of Insurance Commissioners 1994 Variable Annuity MGDB Mortality Table for company experience. Differences between the actual experience and the assumptions used result in variances in profit and could result in losses. In conjunction with the merger the Company updated the fair value of the GMWB reserves to reflect current assumptions as of February 1, 2015 (Successor Company). As a result of the application of ASC Topic 805, the Company reset the hedge premium rates utilized in the valuation for all policies to be equal to the present value of future claims with the reset hedge premium rates being capped at the actual charges to the policyholder. This update resulted in a decrease in the net liability of approximately $266.1 million on the Merger date. As of June 30, 2015 (Successor Company), the net GMWB asset held was approximately $59.9 million.

Policyholder Liabilities

Policyholder Liabilities

Insurance Liabilities and Reserves

In conjunction with the Merger and in accordance with ASC 805, insurance liabilities and reserves are recorded at fair value and the underlying contracts are considered to be new contracts, for measurement and reporting purposes as of the acquisition date. Estimating liabilities for future policy benefits on life and health insurance products requires the use of assumptions relative to future investment yields, mortality, morbidity, persistency, and other assumptions based on the Company’s historical experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviation. Determining liabilities for the Company’s property and casualty insurance products also requires the use of assumptions, including the projected levels of used vehicle prices, the frequency and severity of claims, and the effectiveness of internal processes designed to reduce the level of claims. The Company’s results depend significantly upon the extent to which its actual claims experience is consistent with the assumptions the Company used in determining its reserves and pricing its products. The Company’s reserve assumptions and estimates require significant judgment and, therefore, are inherently uncertain. The Company cannot determine with precision the ultimate amounts that it will pay for actual claims or the timing of those payments. As such, at the acquisition date, the Company updated the assumptions described above to reflect current best estimates and reserves were calculated in accordance with the methodology described below. VOBA was recorded to reflect the difference between the fair value of the contractual insurance liability and the reserve established.

Traditional Life, Health, and Credit Insurance Products

Traditional life insurance products consist principally of those products with fixed and guaranteed premiums and benefits, and they include whole life insurance policies, term and term-like life insurance policies, limited payment life insurance policies, and certain annuities with life contingencies. In accordance with ASC 805, the liabilities for future policy benefits on traditional life insurance products, when combined with the associated VOBA, have been recorded at fair value. These values were computed using assumptions that includes interest rates, mortality, lapse rates, expenses estimates, and other assumptions based on the Company’s experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviation. The liability for future policy benefits and claims on traditional life, health, and credit insurance products includes estimated unpaid claims that have been reported to us and claims incurred but not yet reported.

Universal Life and Investment Products

Universal life and investment products include universal life insurance, guaranteed investment contracts, guaranteed funding agreements, deferred annuities, and annuities without life contingencies. Benefit reserves for universal life and investment products represent policy account balances before applicable surrender charges plus certain deferred policy initiation fees that are recognized in income over the term of the policies. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policy account balances and interest credited to policy account balances.

The Company establishes liabilities for fixed indexed annuity (“FIA”) products. These products are deferred fixed annuities with a guaranteed minimum interest rate plus a contingent return based on equity market performance. The FIA product is considered a hybrid financial instrument under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”) Topic 815—Derivatives and Hedging which allows the Company to make the election to value the liabilities of these FIA products at fair value. This election was made for the FIA products issued prior to 2010 as the policies were issued. These products are no longer being marketed. The future changes in the fair value of the liability for these FIA products will be recorded in Benefit and settlement expenses with the liability being recorded in Annuity account balances. For more information regarding the determination of fair value of annuity account balances please refer to Note 15, Fair Value of Financial Instruments.  Premiums and policy fees for these FIA products consist of fees that have been assessed against the policy account balances for surrenders. Such fees are recognized when assessed and earned.

The Company currently markets a deferred fixed annuity with a guaranteed minimum interest rate plus a contingent return based on equity market performance and the products are considered hybrid financial instruments under the FASB’s ASC Topic 815—Derivatives and Hedging. The Company did not elect to value these FIA products at fair value prior to the Merger date.  As a result the Company accounts for the provision that provides for a contingent return based on equity market performance as an embedded derivative. The embedded derivative is bifurcated from the host contract and recorded at fair value in Other liabilities. The host contract is accounted for as a debt instrument in accordance with ASC Topic 944—Financial Services—Insurance and is recorded in Annuity account balances with any discount to the minimum account value being accreted using the effective yield method. Benefits and settlement expenses include accreted interest and benefit claims incurred during the period.

The Company markets universal life products with a guaranteed minimum interest rate plus a contingent return based on equity market performance and are considered hybrid financial instruments under the FASB’s ASC Topic 815—Derivatives and Hedging. The Company did not elect to value these IUL products at fair value prior to the Merger date. As a result the Company accounts for the provision that provides for a contingent return based on equity market performance as an embedded derivative. The embedded derivative is bifurcated from the host contract and recorded at fair value in Other liabilities. Changes in the fair value of the embedded derivative are recorded in Realized investment gains (losses)—Derivative financial instruments. For more information regarding the determination of fair value of the IUL embedded derivative refer to Note 15, Fair Value of Financial Instruments. The host contract is accounted for as a debt instrument in accordance with ASC Topic 944—Financial Services—Insurance and is recorded in Future policy benefits and claims with any discount to the minimum account value being accreted using the effective yield method. Benefits and settlement expenses include accreted interest and benefit claims incurred during the period.

The Company’s accounting policies with respect to variable universal life (“VUL”) and VA are identical except that policy account balances (excluding account balances that earn a fixed rate) are valued at fair value and reported as components of assets and liabilities related to separate accounts.

The Company establishes liabilities for guaranteed minimum death benefits (“GMDB”) on its VA products. The methods used to estimate the liabilities employ assumptions about mortality and the performance of equity markets. The Company assumes age-based mortality from the National Association of Insurance Commissioners 1994 Variable Annuity MGDB Mortality Table for company experience. Future declines in the equity market would increase the Company’s GMDB liability. Differences between the actual experience and the assumptions used result in variances in profit and could result in losses. Our GMDB as of June 30, 2015 (Successor Company), are subject to a dollar-for-dollar reduction upon withdrawal of related annuity deposits on contracts issued prior to January 1, 2003. As of June 30, 2015 (Successor Company), the GMDB reserve was $32.8 million.

Property and Casualty Insurance Products

Property and casualty insurance products include service contract business, surety bonds, and guaranteed asset protection (“GAP”). Unearned premium reserves are maintained for the portion of the premiums that is related to the unexpired period of the policy. Benefit reserves are recorded when insured events occur. Benefit reserves include case basis reserves for known but unpaid claims as of the balance sheet date as well as incurred but not reported (“IBNR”) reserves for claims where the insured event has occurred but has not been reported to the Company as of the balance sheet date. The case basis reserves and IBNR are calculated based on historical experience and on assumptions relating to claim severity and frequency, the level of used vehicle prices, and other factors. These assumptions are modified as necessary to reflect anticipated trends.

Reinsurance

Reinsurance

The Company uses reinsurance extensively in certain of its segments and accounts for reinsurance and the recognition of the impact of reinsurance costs in accordance with the ASC Financial Services — Insurance Topic. The following summarizes some of the key aspects of the Company’s accounting policies for reinsurance.

Reinsurance Assets and Liabilities—Claim liabilities and policy benefits are calculated consistently for all policies, regardless of whether or not the policy is reinsured. Once the claim liabilities and policy benefits for the underlying policies are estimated, the amounts recoverable from the reinsurers are estimated based on a number of factors including the terms of the reinsurance contracts, historical payment patterns of reinsurance partners, and the financial strength and credit worthiness of reinsurance partners and recorded as Reinsurance receivables on the balance sheet. The reinsurance receivables were recorded in the balance sheet using current accounting policies and the most current assumptions as of the merger date. As of the merger date, the Company also calculated the ceded VOBA associated with the reinsured policies. The reinsurance receivables combined with the associated ceded VOBA represent the fair value of the reinsurance assets. Liabilities for unpaid reinsurance claims are produced from claims and reinsurance system records, which contain the relevant terms of the individual reinsurance contracts. The Company monitors claims due from reinsurers to ensure that balances are settled on a timely basis. Incurred but not reported claims are reviewed by the Company’s actuarial staff to ensure that appropriate amounts are ceded.

The Company analyzes and monitors the credit worthiness of each of its reinsurance partners to minimize collection issues. For newly executed reinsurance contracts with reinsurance companies that do not meet predetermined standards, the Company requires collateral such as assets held in trusts or letters of credit.

Accounting Pronouncements Recently Adopted

Accounting Pronouncements Recently Adopted

Accounting Standards Update (“ASU”) No. 2014-08—Reporting Discontinued Operations and Disclosure of Disposals of Components of an Entity. This Update changes the requirements for reporting discontinued operations and related disclosures. The Update limits the definition of a discontinued operation to disposals that represent “strategic shifts” that will have a major effect on an entity’s operation and financial results. Additionally, the Update requires enhanced disclosures about the components of discontinued operations and the financial effects of the disposal. The amendments in this Update are effective for annual and interim periods beginning after December 15, 2014. The Company has reviewed the additional disclosures required by the Update, and will apply the revised guidance to any disposals occurring after the effective date.

ASU No. 2014-11—Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.  This Update changes the requirements for classification of certain repurchase agreements, and will expand the use of secured borrowing accounting for repurchase-to-maturity transactions. In addition, the Update requires additional disclosures for repurchase agreements accounted for both as sales and as secured borrowings. The amendments in this Update are effective for annual and interim periods beginning after December 15, 2014. The Update did not impact the Company’s financial position or results of operations. The Company has updated its policies and processes to ensure compliance with the additional disclosure requirements in this Update.

ASU No. 2014-17—Business Combinations (Topic 805).  This Update relates to “pushdown accounting”, which refers to pushing down the acquirer’s accounting and reporting basis (which is recognized in conjunction with its accounting for a business combination) to the acquiree’s standalone financial statements. The new guidance makes pushdown accounting optional for an acquiree that is a business or nonprofit activity when there is a change-in- control event (e.g., the acquirer in a business combination obtains control over the acquiree). In addition, the staff of the SEC released Staff Accounting Bulletin (“SAB”) No. 115, which rescinds SAB Topic 5J, “New Basis of Accounting Required in Certain Circumstances” (the SEC staff’s pre-existing guidance on pushdown accounting) and conforms SEC guidance on pushdown accounting to the FASB’s new guidance. Revised SEC guidance was codified in ASU No. 2015-08, issued in May 2015. The new pushdown accounting guidance became effective upon its issuance on November 18, 2014. Although now optional, the Company has applied pushdown accounting to its standalone financial statements effective with the Company becoming a wholly owned subsidiary of Dai-ichi Life on February 1, 2015. The presentation within this report for predecessor and successor periods is consistent with this Update.

Accounting Pronouncements Not Yet Adopted

Accounting Pronouncements Not Yet Adopted

ASU No. 2014-09—Revenue from Contracts with Customers (Topic 606). This Update provides for significant revisions to the recognition of revenue from contracts with customers across various industries. Under the new guidance, entities are required to apply a prescribed 5-step process to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The accounting for revenues associated with insurance products is not within the scope of this Update. The Update was originally effective for annual and interim periods beginning after December 15, 2017.  However, in July 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year to December 15, 2018. Early adoption will be allowed, but not before the original effective date. The Company is reviewing its policies and processes to ensure compliance with the requirements in this Update, upon adoption. The Company is currently assessing the impact this standard will have on its non-insurance operations.

ASU No. 2014-15—Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This Update will require management to assess an entity’s ability to continue as a going concern, and will require footnote disclosures in certain circumstances. Under the updated guidance, management should consider relevant conditions and evaluate whether it is probable that the entity will be unable to meet its obligations within one year after the issuance date of the financial statements. The Update is effective for annual periods ending December 31, 2016 and interim periods thereafter, with early adoption is permitted. The amendments in this Update will not impact the Company’s financial position or results of operations. However, the new guidance will require a formal assessment of going concern by management based on criteria prescribed in the new guidance. The Company is reviewing its policies and processes to ensure compliance with the new guidance.

ASU No. 2015-02—Consolidation—Amendments to the Consolidation Analysis.  This Update makes several targeted changes to generally accepted accounting principles, including a) eliminating the presumption that a general partner should consolidate a limited partnership and b) eliminating the consolidation model specific to limited partnerships. The amendments also clarify when fees and related party relationships should be considered in the consolidation of variable interest entities. The amendments in this Update are effective for annual and interim periods beginning after December 15, 2015. The Company is reviewing its policies and processes to ensure compliance with the requirements in this Update, upon adoption.

ASU No. 2015-03—Interest—Imputation of Interest. The objective of this Update is to eliminate diversity in practice related to the presentation of debt issuance costs. The amendments in this Update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update. The Update is effective for fiscal years beginning after December 15, 2015, and requires revised presentation of debt issuance costs in all periods presented in the financial statements. The Company is reviewing its processes to ensure compliance with the revised guidance.

ASU No. 2015-05 — Intangibles — Goodwill and Other — Internal-Use Software. The amendments in this Update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer’s accounting for service contracts. The Update is effect for annual and interim periods beginning after December 15, 2015. The Company is reviewing its policies and processes to ensure compliance with the revised guidance.

ASU No. 2015-09 — Financial Services—Insurance (Topic 944): Disclosures about Short-Duration Contracts. The amendments in this Update require additional disclosures for short-duration contracts issued by insurance entities. The additional disclosures focus on the liability for unpaid claims and claim adjustment expenses and include incurred and paid claims development information by accident year in tabular form, along with a reconciliation of this information to the statement of financial position. For accident years included in the development tables, the amendments also require disclosure of the total incurred-but-not-reported liabilities and expected development on reported claims, along with claims frequency information unless impracticable. Finally, the amendments require disclosure of the historical average annual percentage payout of incurred claims. With the exception of the current reporting period, claims development information may be presented as supplementary information. The Update is effective for annual periods beginning after December 15, 2015 and interim periods beginning after December 15, 2016. The Company is reviewing its products to determine the applicability and potential impact of the new disclosures.

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2015

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

19.SUBSEQUENT EVENTS

The Company has evaluated the effects of events subsequent to June 30, 2015 (Successor Company), and through the date we filed our consolidated condensed financial statements with the United States Securities and Exchange Commission. All accounting and disclosure requirements related to subsequent events are included in our consolidated condensed financial statements.

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MORTGAGE LOANS (Details) - Jun. 30, 2015 - USD ($) $ in Thousands	Total
Mortgage loans
Mortgage loans holdings	$ 5,677,667
Amount that would become due in remainder of 2015, if loans are called at their next call dates	121,100
Amount that would become due in 2016 through 2020, if loans are called at their next call dates	953,000
Amount that would become due in 2021 through 2025, if loans are called at their next call dates	377,900
Amount that would become due after 2025, if loans are called at their next call dates	$ 118,300
Minimum
Mortgage loans
Period for exercise of call options or interest rate reset options	3 years
Maximum
Mortgage loans
Period for exercise of call options or interest rate reset options	10 years

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OPERATING SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2015

OPERATING SEGMENTS

Summary of financial information for the Company's segments

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Revenues
Life Marketing	$	379,122		$	651,298		$	145,595		$	407,032		$	791,798
Acquisitions	363,985			622,774			139,761			438,244			865,192
Annuities	145,085			248,454			7,884			155,417			300,074
Stable Value Products	16,656			26,998			8,181			27,109			54,928
Asset Protection	69,680			113,707			21,953			70,870			137,253
Corporate and Other	44,233			77,857			17,535			56,671			96,656
Total revenues	$	1,018,761		$	1,741,088		$	340,909		$	1,155,343		$	2,245,901
Segment Operating Income (Loss)
Life Marketing	$	6,651		$	10,076		$	(1,618	)	$	26,349		$	49,834
Acquisitions	37,876			73,946			20,134			64,882			125,878
Annuities	49,189			87,374			13,164			55,258			106,901
Stable Value Products	9,349			15,464			4,529			17,287			34,684
Asset Protection	5,897			9,944			2,420			8,534			14,903
Corporate and Other	(9,881		)	(7,996		)	(10,144		)	(12,555		)	(27,410		)
Total segment operating income	99,081			188,808			28,485			159,755			304,790
Realized investment (losses) gains - investments(1)	(115,706		)	(158,639		)	89,815			74,920			143,453
Realized investment (losses) gains - derivatives	113,535			159,568			(117,118		)	(72,465		)	(160,828		)
Income tax (expense) benefit	(33,070		)	(63,036		)	327			(54,233		)	(95,799		)
Net income	$	63,840		$	126,701		$	1,509		$	107,977		$	191,616
Investment gains (losses)(2)	$	(108,071	)	$	(143,127	)	$	80,672		$	78,688		$	149,211
Less: amortization related to DAC/VOBA and benefits and settlement expenses	7,635			15,512			(9,143		)	3,768			5,758
Realized investment gains (losses) - investments	$	(115,706	)	$	(158,639	)	$	89,815		$	74,920		$	143,453
Derivative gains (losses)(3)	$	94,603		$	128,244		$	(123,274	)	$	(89,926	)	$	(195,276	)
Less: VA GMWB economic cost	(18,932		)	(31,324		)	(6,156		)	(17,461		)	(34,448		)
Realized investment gains (losses) - derivatives	$	113,535		$	159,568		$	(117,118	)	$	(72,465	)	$	(160,828	)

(1) Includes credit related other-than-temporary impairments of $5.7 million and $5.7 million for the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company), respectively.  Includes $0.5 million, $1.5 million, and $3.1 million of credit related other-than-temporary impairments for the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the three and six months ended June 30, 2014 (Predecessor Company), respectively.

(2) Includes realized investment gains (losses) before related amortization.

(3) Includes realized gains (losses) on derivatives before the VA GMWB economic cost.

	Operating Segment Assets
	As of June 30, 2015 (Successor Company)
	(Dollars In Thousands)
	Life							Stable Value
	Marketing		Acquisitions			Annuities		Products
Investments and other assets	$	13,170,634	$	20,223,282		$	20,271,514	$	1,737,745
Deferred policy acquisition costs and value of business acquired	1,051,702		(190,193		)	490,973		—
Other intangibles	329,102		40,936			203,446		9,722
Goodwill	203,543		14,524			336,677		113,813
Total assets	$	14,754,981	$	20,088,549		$	21,302,610	$	1,861,280
	Asset		Corporate					Total
	Protection		and Other			Adjustments		Consolidated
Investments and other assets	$	858,958	$	10,235,479		$	11,034	$	66,508,646
Deferred policy acquisition costs and value of business acquired	41,444		—			—		1,393,926
Other intangibles	82,581		—			—		665,787
Goodwill	67,155		—			—		735,712
Total assets	$	1,050,138	$	10,235,479		$	11,034	$	69,304,071
	Operating Segment Assets
	As of December 31, 2014 (Predecessor Company)
	(Dollars In Thousands)
	Life							Stable Value
	Marketing		Acquisitions			Annuities		Products
Investments and other assets	$	13,858,491	$	19,858,284		$	20,783,373	$	1,958,867
Deferred policy acquisition costs and value of business acquired	1,973,156		600,482			684,574		621
Goodwill	10,192		29,419			—		—
Total assets	$	15,841,839	$	20,488,185		$	21,467,947	$	1,959,488
	Asset		Corporate					Total
	Protection		and Other			Adjustments		Consolidated
Investments and other assets	$	927,202	$	9,682,362		$	14,792	$	67,083,371
Deferred policy acquisition costs and value of business acquired	35,418		319			—		3,294,570
Goodwill	62,671		83			—		102,365
Total assets	$	1,025,291	$	9,682,764		$	14,792	$	70,480,306

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2015

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of property and equipment

	Successor		Predecessor
	Company		Company
	As of		As of
	June 30, 2015		December 31, 2014
	(Dollars In Thousands)		(Dollars In Thousands)
Home office building	$	65,127	$	75,109
Land	24,920		—
Data processing equipment	11,815		40,919
Other, principally furniture and equipment	4,894		55,312
	106,756		171,340
Accumulated depreciation	3,658		118,487
Total property and equipment	$	103,098	$	52,853

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DAI-ICHI MERGER (Tables)

6 Months Ended

Jun. 30, 2015

DAI-ICHI MERGER

Summary of fair values of the net assets acquired

	Fair Value
	As of
	February 1, 2015
	(Dollars In Thousands)
Assets
Fixed maturities	$	38,363,025
Equity securities	745,512
Mortgage loans	5,580,229
Investment real estate	7,456
Policy loans	1,751,872
Other long-term investments	686,507
Short-term investments	316,167
Total investments	47,450,768
Cash	462,710
Accrued investment income	484,021
Accounts and premiums receivable	112,182
Reinsurance receivables	5,724,020
Value of business acquired	1,276,886
Goodwill	735,712
Other intangibles	683,000
Property and equipment	104,364
Other assets	120,762
Income tax receivable	15,458
Assets related to separate accounts
Variable annuity	12,970,587
Variable universal life	819,188
Total assets	$	70,959,658
Liabilities
Future policy and benefit claims	$	30,195,841
Unearned premiums	682,183
Total policy liabilities and accruals	30,878,024
Stable value product account balances	1,932,277
Annuity account balances	10,941,661
Other policyholders’ funds	1,388,083
Other liabilities	2,188,863
Deferred income taxes	1,535,556
Non-recourse funding obligations	621,798
Repurchase program borrowings	50,000
Debt	1,519,211
Subordinated debt securities	560,351
Liabilities related to separate accounts
Variable annuity	12,970,587
Variable universal life	819,188
Total liabilities	65,405,599
Net assets acquired	$	5,554,059

Schedule of Intangible assets recognized

	Estimated
	Fair Value on		Estimated
	Acquisition Date		Useful Life
	(Dollars In Thousands)		(In Years)
Distribution relationships	$	405,000	14-22
Trade names	103,000		13-17
Technology	143,000		7-14
Total intangible assets subject to amortization	651,000
Insurance licenses	32,000		Indefinite
Total intangible assets	$	683,000

Schedule of estimated aggregate amortization expense

Year	Amount
	(Dollars In Thousands)
2015	$	20,657
2016	41,313
2017	41,313
2018	41,313
2019	41,313

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CONSOLIDATED CONDENSED STATEMENTS OF SHAREOWNERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In-Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance (Predecessor) at Dec. 31, 2014	$ 44,388	$ 606,125	$ (185,705)	$ 3,082,000	$ 1,418,076	$ 4,964,884
Increase (decrease) in shareowners' equity
Net income | Predecessor				1,509		1,509
Other comprehensive income | Predecessor					465,968	465,968
Total comprehensive income (loss) | Predecessor						467,477
Stock-based compensation | Predecessor		1,550				1,550
Balance (Predecessor) at Jan. 31, 2015	$ 44,388	607,675	$ (185,705)	3,083,509	1,884,044	5,433,911
Balance at Jan. 31, 2015		5,554,059				5,554,059
Increase (decrease) in shareowners' equity
Net income				126,701		126,701
Other comprehensive income					(897,772)	(897,772)
Total comprehensive income (loss)						(771,071)
Balance at Jun. 30, 2015		$ 5,554,059		$ 126,701	$ (897,772)	$ 4,782,988

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MONY CLOSED BLOCK OF BUSINESS (Tables)

6 Months Ended

Jun. 30, 2015

MONY CLOSED BLOCK OF BUSINESS

Summary of financial information for the Closed Block

	Successor		Predecessor
	Company		Company
	As of		As of
	June 30, 2015		December 31, 2014
	(Dollars In Thousands)		(Dollars In Thousands)
Closed block liabilities
Future policy benefits, policyholders’ account balances and other policyholder liabilities	$	6,062,552	$	6,138,505
Policyholder dividend obligation	52,283		366,745
Other liabilities	18,885		53,838
Total closed block liabilities	6,133,720		6,559,088
Closed block assets
Fixed maturities, available-for-sale, at fair value	$	4,424,934	$	4,524,037
Equity securities, available-for-sale, at fair value	—		5,387
Mortgage loans on real estate	345,678		448,855
Policy loans	755,692		771,120
Cash and other invested assets	34,511		30,984
Other assets	154,346		221,270
Total closed block assets	5,715,161		6,001,653
Excess of reported closed block liabilities over closed block assets	418,559		557,435
Portion of above representing accumulated other comprehensive income:
Net unrealized investment gains (losses) net of deferred tax benefit of $0 (Successor) and $0 (Predecessor); net of policyholder dividend obligation of $166,434 (Successor) and $106,886 (Predecessor)	—		—
Future earnings to be recognized from closed block assets and closed block liabilities	$	418,559	$	557,435

Schedule of reconciliation of the policyholder dividend obligation

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015			For The Six
	to			to			Months Ended
	June 30, 2015			January 31, 2015			June 30, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Policyholder dividend obligation, beginning of period	$	323,432		$	366,745		$	190,494
Applicable to net revenue (losses)	(15,096		)	(1,369		)	(6,951		)
Change in net unrealized investment gains (losses) allocated to the policyholder dividend obligation	(256,053		)	135,077			145,329
Policyholder dividend obligation, end of period	$	52,283		$	500,453		$	328,872

Schedule of Closed Block revenues and expenses

	Successor Company				Predecessor Company
	For The Three		February 1, 2015		January 1, 2015		For The Three		For The Six
	Months Ended		to		to		Months Ended		Months Ended
	June 30, 2015		June 30, 2015		January 31, 2015		June 30, 2014		June 30, 2014
	(Dollars In Thousands)				(Dollars In Thousands)
Revenues
Premiums and other income	$	49,998	$	81,669	$	15,065	$	53,073	$	102,846
Net investment income (loss)	54,833		87,681		19,107		60,416		112,623
Net investment gains (losses)	2,216		2,850		568		1,086		6,105
Total revenues	107,047		172,200		34,740		114,575		221,574
Benefits and other deductions
Benefits and settlement expenses	98,975		154,746		31,152		103,209		199,535
Other operating expenses	263		474		—		383		90
Total benefits and other deductions	99,238		155,220		31,152		103,592		199,625
Net revenues before income taxes	7,809		16,980		3,588		10,983		21,949
Income tax expense	2,733		5,943		1,256		3,844		7,682
Net revenues	$	5,076	$	11,037	$	2,332	$	7,139	$	14,267

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INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2015

INCOME TAXES

Schedule of components of the Company's net deferred income tax liability

	Successor			Predecessor
	Company			Company
	As of			As of
	June 30, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Deferred income tax assets:
Loss and credit carryforwards	$	74,720		$	516
Premium receivables and policy liabilities	—			95,298
Deferred compensation	231,732			194,223
Invested assets (other than unrealized gains)	—			63,901
Deferred policy acquisition costs	429,086			—
Premium on corporate debt	118,633			—
Net unrealized loss on investments	483,439			—
Other	23,587			—
Valuation allowance	(2,053		)	(2,206		)
	1,359,144			351,732
Deferred income tax liabilities:
Premium receivables and policy liabilities	128,645			—
VOBA and other intangibles	671,775			—
DAC and VOBA	—			1,078,533
Invested assets (other than unrealized gains)	1,626,896			—
Net unrealized gains on investments	—			799,123
Other	—			19,554
	2,427,316			1,897,210
Net deferred income tax liability	$	(1,068,172	)	$	(1,545,478	)

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015
	to			to			As of
	June 30, 2015			January 31, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Balance, beginning of period	$	137,593		$	193,244		$	105,881
Additions for tax positions of the current year	59,042			(5,010		)	57,463
Additions for tax positions of prior years	—			7,724			39,433
Reductions of tax positions of prior years:
Changes in judgment	(1,028		)	(58,365		)	(9,533		)
Settlements during the period	—			—			—
Lapses of applicable statute of limitations	—			—			—
Balance, end of period	$	195,607		$	137,593		$	193,244

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INVESTMENT OPERATIONS (Details 3) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Investment operations
Other-than-temporary impairments of investments recorded		$ 13,395		$ 13,395
Other-than-temporary impairments of investments recorded in earnings		5,734		5,734
Other-than-temporary impairments of investments recorded in other comprehensive income (loss)		7,661		7,661
Fixed maturities
Investment operations
Other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell				0
Credit losses on fixed maturities
Additions for newly impaired securities		4,472		4,472
Ending balance		$ 4,472		4,472
Equity securities
Investment operations
Other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell				0
Predecessor
Investment operations
Other-than-temporary impairments of investments recorded	$ 636		$ 461		$ 884
Other-than-temporary impairments of investments recorded in earnings	481		1,460		3,051
Other-than-temporary impairments of investments recorded in other comprehensive income (loss)	155		(999)		(2,167)
Predecessor | Fixed maturities
Investment operations
Other-than-temporary impairments of investments recorded			500		900
Other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell	0		0		0
Credit losses on fixed maturities
Beginning balance	15,478		20,839	$ 15,699	41,692
Additions for previously impaired securities	221		553		1,027
Reductions for previously impaired securities due to a change in expected cash flows			(3,407)		(24,734)
Ending balance	15,699		17,985		17,985
Predecessor | Fixed income securities
Investment operations
Other-than-temporary impairments of investments recorded	600
Predecessor | Equity securities
Investment operations
Other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell	$ 0		$ 0		$ 0

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INCOME TAXES (Details 2) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended		12 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Reconciliation of the beginning and ending amount of unrecognized tax benefits
Balance, beginning of period				$ 137,593
Additions for tax positions of the current year				59,042
Reductions of tax positions of prior years:
Changes in judgment				(1,028)
Balance, end of period	$ 137,593	$ 195,607		$ 195,607	$ 195,607
Possible reduction in unrecognized tax benefits due to expected closure of Appeals process					142,500
Effective tax rate (as a percent)		34.10%		33.20%
Predecessor
Reconciliation of the beginning and ending amount of unrecognized tax benefits
Balance, beginning of period	193,244			$ 137,593	$ 193,244	$ 105,881	$ 105,881
Additions for tax positions of the current year	(5,010)						57,463
Additions for tax positions of prior years	7,724						39,433
Reductions of tax positions of prior years:
Changes in judgment	(58,365)						(9,533)
Balance, end of period	$ 137,593						$ 193,244
Effective tax rate (as a percent)	(27.70%)		33.40%			33.30%

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CONSOLIDATED CONDENSED STATEMENTS OF INCOME - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues
Premiums and policy fees		$ 832,088		$ 1,341,096
Reinsurance ceded		(345,244)		(486,645)
Net of reinsurance ceded		486,844		854,451
Net investment income		436,291		725,163
Realized investment gains (losses):
Derivative financial instruments		94,603		128,244
All other investments		(102,337)		(137,393)
Other-than-temporary impairment losses		(13,395)		(13,395)
Portion recognized in other comprehensive income (before taxes)		7,661		7,661
Net impairment losses recognized in earnings		(5,734)		(5,734)
Other income		109,094		176,357
Total revenues		1,018,761		1,741,088
Benefits and expenses
Benefits and settlement expenses, net of reinsurance ceded: (2015 Successor - $303,743 and $420,951); (2015 Predecessor - $87,674; 2014 Predecessor - three months: $328,555; six months: $633,387)		694,606		1,180,905
Amortization of deferred policy acquisition costs and value of business acquired		40,094		67,991
Other operating expenses, net of reinsurance ceded: (2015 Successor - $49,741 and $84,777); (2015 Predecessor - $35,036; 2014 Predecessor - three months: $46,545; six months: $90,311)		187,151		302,455
Total benefits and expenses		921,851		1,551,351
Income before income tax		96,910		189,737
Income tax expense (benefit)		33,070		63,036
Net Income		$ 63,840		$ 126,701
Predecessor
Revenues
Premiums and policy fees	$ 261,866		$ 851,802		$ 1,667,698
Reinsurance ceded	(89,956)		(342,968)		(670,681)
Net of reinsurance ceded	171,910		508,834		997,017
Net investment income	175,180		550,816		1,088,979
Realized investment gains (losses):
Derivative financial instruments	(123,274)		(89,926)		(195,276)
All other investments	81,153		80,148		152,262
Other-than-temporary impairment losses	(636)		(461)		(884)
Portion recognized in other comprehensive income (before taxes)	155		(999)		(2,167)
Net impairment losses recognized in earnings	(481)		(1,460)		(3,051)
Other income	36,421		106,931		205,970
Total revenues	340,909		1,155,343		2,245,901
Benefits and expenses
Benefits and settlement expenses, net of reinsurance ceded: (2015 Successor - $303,743 and $420,951); (2015 Predecessor - $87,674; 2014 Predecessor - three months: $328,555; six months: $633,387)	267,287		747,816		1,476,335
Amortization of deferred policy acquisition costs and value of business acquired	4,072		51,531		107,113
Other operating expenses, net of reinsurance ceded: (2015 Successor - $49,741 and $84,777); (2015 Predecessor - $35,036; 2014 Predecessor - three months: $46,545; six months: $90,311)	68,368		193,786		375,038
Total benefits and expenses	339,727		993,133		1,958,486
Income before income tax	1,182		162,210		287,415
Income tax expense (benefit)	(327)		54,233		95,799
Net Income	$ 1,509		$ 107,977		$ 191,616
Net income - basic (in dollars per share)	$ 0.02		$ 1.35		$ 2.40
Net income - diluted (in dollars per share)	$ 0.02		1.33		2.36
Cash dividends paid per share (in dollars per share)			$ 0.24		$ 0.44
Average shares outstanding - basic (in shares)	80,452,848		79,979,153		79,794,831
Average shares outstanding - diluted (in shares)	81,759,287		81,446,277		81,160,800

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BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended	5 Months Ended
	Mar. 31, 2015	Jun. 30, 2015	Jun. 30, 2015	Feb. 01, 2015
BASIS OF PRESENTATION
Goodwill		$ 735,712	$ 735,712	$ 735,700
Prior period pro forma effect of adjustment
Other comprehensive income		$ (605,333)	$ (897,772)
Pro Forma | Shadow Adjustments to Unrealized Investment Losses
Prior period pro forma effect of adjustment
Other comprehensive income	$ 66,700

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CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets
Fixed maturities, at fair value (amortized cost: 2015 Successor - $37,890,827; 2014 Predecessor - $33,738,242)	$ 35,762,609
Fixed maturities, at amortized cost (fair value: 2015 Successor - $489,950; 2014 Predecessor - $485,422)	565,334
Equity securities, at fair value (cost: 2015 Successor - $734,053; 2014 Predecessor - $778,744)	722,457
Mortgage loans (related to securitizations: 2015 Successor - $423,702; 2014 Predecessor - $455,250)	5,677,667
Investment real estate, net of accumulated depreciation (2015 Successor - $52; 2014 Predecessor - $246)	7,404
Policy loans	1,719,864
Other long-term investments	700,983
Short-term investments	204,667
Total investments	45,360,985
Cash	568,776
Accrued investment income	472,584
Accounts and premiums receivable	70,894
Reinsurance receivables	5,613,895
Deferred policy acquisition costs and value of business acquired	1,393,926
Goodwill	735,712
Other intangibles, net of accumulated amortization (2015 Successor - $17,212)	665,787
Property and equipment, net of accumulated depreciation (2015 Successor - $3,658; 2014 Predecessor - $118,487)	103,098
Other assets	146,300
Assets related to separate accounts
Variable annuity	13,313,000
Variable universal life	859,114
Total assets	69,304,071
Liabilities
Future policy benefits and claims	29,721,028
Unearned premiums	714,115
Total policy liabilities and accruals	30,435,143
Stable value product account balances	1,861,280
Annuity account balances	10,792,560
Other policyholders' funds	1,121,465
Other liabilities	1,595,091
Income tax payable	101,583
Deferred income taxes	1,068,172
Non-recourse funding obligations	656,299
Repurchase program borrowings	602,213
Debt	1,662,739
Subordinated debt securities	452,424
Liabilities related to separate accounts
Variable annuity	13,313,000
Variable universal life	859,114
Total liabilities	$ 64,521,083
Commitments and contingencies - Note 10
Shareowners' equity
Common Stock, 2015 (Successor) and 2014 (Predecessor) - $.01 par value and $.50 par value; shares authorized: 5,000 and 160,000,000; shares issued: 1,000 and 88,776,960, respectively
Additional paid-in-capital	$ 5,554,059
Retained earnings	126,701
Accumulated other comprehensive income (loss):
Net unrealized (losses) gains on investments, net of income tax: (2015 Successor - $(480,957); 2014 Predecessor - $796,960)	(893,206)
Net unrealized (losses) gains relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, net of income tax: (2015 Successor - $(2,458); 2014 Predecessor - $2,208)	(4,566)
Total shareowners' equity	4,782,988
Total liabilities and shareowners' equity	$ 69,304,071
Predecessor
Assets
Fixed maturities, at fair value (amortized cost: 2015 Successor - $37,890,827; 2014 Predecessor - $33,738,242)		$ 36,775,989
Fixed maturities, at amortized cost (fair value: 2015 Successor - $489,950; 2014 Predecessor - $485,422)		435,000
Equity securities, at fair value (cost: 2015 Successor - $734,053; 2014 Predecessor - $778,744)		803,230
Mortgage loans (related to securitizations: 2015 Successor - $423,702; 2014 Predecessor - $455,250)		5,133,780
Investment real estate, net of accumulated depreciation (2015 Successor - $52; 2014 Predecessor - $246)		5,918
Policy loans		1,758,237
Other long-term investments		514,639
Short-term investments		250,645
Total investments		45,677,438
Cash		379,411
Accrued investment income		474,522
Accounts and premiums receivable		84,458
Reinsurance receivables		6,106,113
Deferred policy acquisition costs and value of business acquired		3,294,570
Goodwill		102,365
Property and equipment, net of accumulated depreciation (2015 Successor - $3,658; 2014 Predecessor - $118,487)		52,853
Other assets		316,207
Assets related to separate accounts
Variable annuity		13,157,429
Variable universal life		834,940
Total assets		70,480,306
Liabilities
Future policy benefits and claims		29,944,890
Unearned premiums		1,574,077
Total policy liabilities and accruals		31,518,967
Stable value product account balances		1,959,488
Annuity account balances		10,950,729
Other policyholders' funds		1,430,325
Other liabilities		1,621,168
Income tax payable		23,901
Deferred income taxes		1,545,478
Non-recourse funding obligations		582,404
Repurchase program borrowings		50,000
Debt		1,300,000
Subordinated debt securities		540,593
Liabilities related to separate accounts
Variable annuity		13,157,429
Variable universal life		834,940
Total liabilities		$ 65,515,422
Commitments and contingencies - Note 10
Shareowners' equity
Preferred Stock; (Predecessor) $1 par value, shares authorized: 4,000,000; Issued: None
Common Stock, 2015 (Successor) and 2014 (Predecessor) - $.01 par value and $.50 par value; shares authorized: 5,000 and 160,000,000; shares issued: 1,000 and 88,776,960, respectively		$ 44,388
Additional paid-in-capital		606,125
Treasury stock, at cost ( 2014 Predecessor - 9,435,255 )		(185,705)
Retained earnings		3,082,000
Accumulated other comprehensive income (loss):
Net unrealized (losses) gains on investments, net of income tax: (2015 Successor - $(480,957); 2014 Predecessor - $796,960)		1,480,068
Net unrealized (losses) gains relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, net of income tax: (2015 Successor - $(2,458); 2014 Predecessor - $2,208)		4,101
Accumulated gain (loss) - derivatives, net of income tax: (2015 Successor - $0; 2014 Predecessor - $(45))		(82)
Postretirement benefits liability adjustment, net of income tax: (2015 Successor - $0; 2014 Predecessor - $(35,545))		(66,011)
Total shareowners' equity		4,964,884
Total liabilities and shareowners' equity		$ 70,480,306

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MORTGAGE LOANS (Details 4) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Commercial mortgage loans:
Maximum number of days accrued interest on impaired loans	90 days
Commercial mortgage loans
Recorded Investment
With no related allowance recorded	$ 9,022
With an allowance recorded	1,500
Unpaid Principal Balance
With no related allowance recorded	12,243
With an allowance recorded	2,035
Related Allowance
With an allowance recorded	535
Average Recorded Investment
With no related allowance recorded	1,504
With an allowance recorded	1,500
Interest Income Recognized
With no related allowance recorded	199
With an allowance recorded	31
Cash Basis Interest Income
With no related allowance recorded	168
With an allowance recorded	$ 31
Predecessor | Commercial mortgage loans
Recorded Investment
With an allowance recorded		$ 19,632
Unpaid Principal Balance
With an allowance recorded		20,603
Related Allowance
With an allowance recorded		5,720
Average Recorded Investment
With an allowance recorded		3,272
Interest Income Recognized
With an allowance recorded		1,224
Cash Basis Interest Income
With an allowance recorded		$ 1,280

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DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED (Tables)

6 Months Ended

Jun. 30, 2015

DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED

Schedule of balances and changes in DAC

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015
	to			to			As of
	June 30, 2015			January 31, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Balance, beginning of period	$	—		$	2,647,980		$	2,721,687
Capitalization of commissions, sales, and issue expenses	130,346			22,513			288,592
Amortization	(7,750		)	1,117			(195,605		)
Change in unrealized investment gains and losses	4,073			(96,830		)	(166,694		)
Balance, end of period	$	126,669		$	2,574,780		$	2,647,980

Schedule of balances and changes in VOBA

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015
	to			to			As of
	June 30, 2015			January 31, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Balance, beginning of period	$	1,276,886		$	646,590		$	848,528
Amortization	(60,241		)	(5,189		)	(61,704		)
Change in unrealized investment gains and losses	50,612			(79,418		)	(140,234		)
Balance, end of period	$	1,267,257		$	561,983		$	646,590

Schedule of expected amortization of VOBA for the next five years

	Expected
Years	Amortization
	(Dollars In Thousands)
2015	$	75,180
2016	141,346
2017	131,356
2018	116,146
2019	97,272

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COMMITMENTS AND CONTINGENCIES (Details 2) - Targeted multi-state examination with respect to claims paying practices $ in Millions	Jun. 30, 2015 USD ($)
Commitments and contingencies
Administrative and/or examination fees which the insurance regulators could demand, minimum	$ 0.0
Administrative and/or examination fees which the insurance regulators could demand, maximum	$ 3.5

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EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2015

EARNINGS PER SHARE

EARNINGS PER SHARE

13.EARNINGS PER SHARE

As of February 1, 2015, the Company became a wholly owned subsidiary of Dai-ichi Life, and for the period of February 1, 2015 to June 30, 2015 (Successor Company), there was no market for the Company’s common stock and therefore the Company will no longer disclose earnings per share information.

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period, including shares issuable under various deferred compensation plans. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and dilutive potential common shares outstanding during the period, assuming the shares were not anti-dilutive, including shares issuable under various stock-based compensation plans and stock purchase contracts.

A reconciliation of the numerators and denominators of the basic and diluted earnings per share is presented below for the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the three and six months ended June 30, 2014 (Predecessor Company):

	Predecessor Company
	January 1, 2015		For The Three		For The Six
	to		Months Ended		Months Ended
	January 31, 2015		June 30, 2014		June 30, 2014
	(Dollars In Thousands, Except Per Share Amounts)
Calculation of basic earnings per share:
Net income	$	1,509	$	107,977	$	191,616
Average shares issued and outstanding	79,343,253		78,852,583		78,740,416
Issuable under various deferred compensation plans	1,109,595		1,126,570		1,054,415
Weighted shares outstanding - basic	80,452,848		79,979,153		79,794,831
Per share:
Net income - basic	$	0.02	$	1.35	$	2.40
Calculation of diluted earnings per share:
Net income	$	1,509	$	107,977	$	191,616
Weighted shares outstanding - basic	80,452,848		79,979,153		79,794,831
Stock appreciation rights (“SARs”)	64,570		492,463		479,430
Issuable under various other stock-based compensation plans	935,382		716,327		641,411
Restricted stock units	306,487		258,334		245,128
Weighted shares outstanding - diluted	81,759,287		81,446,277		81,160,800
Per share:
Net income - diluted	$	0.02	$	1.33	$	2.36

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DEBT AND OTHER OBLIGATIONS (Tables)

6 Months Ended

Jun. 30, 2015

DEBT AND OTHER OBLIGATIONS

Summary of debt and subordinated debt securities

	Successor		Predecessor
	Company		Company
	As of		As of
	June 30, 2015		December 31, 2014
	(Dollars In Thousands)		(Dollars In Thousands)
Debt (year of issue):
Revolving Line of Credit	$	545,000	$	450,000
6.40% Senior Notes (2007), due 2018	165,625		150,000
7.375% Senior Notes (2009), due 2019	482,183		400,000
8.45% Senior Notes (2009), due 2039	469,931		300,000
	$	1,662,739	$	1,300,000
Subordinated debt securities (year of issue):
6.125% Subordinated Debentures (2004), due 2034, callable 2009	$	—	$	103,093
6.25% Subordinated Debentures (2012), due 2042, callable 2017	298,659		287,500
6.00% Subordinated Debentures (2012), due 2042, callable 2017	153,765		150,000
	$	452,424	$	540,593

Non-recourse funding obligations outstanding

				Year-to-Date
			Maturity	Weighted-Avg
Issuer	Balance		Year	Interest Rate
	(Dollars In Thousands)
Golden Gate II Captive Insurance Company	$	118,274	2052	1.32	%
Golden Gate V Vermont Captive Insurance Company(1)	535,474		2037	5.12	%
MONY Life Insurance Company(1)	2,551		2024	6.19	%
Total	$	656,299

(1) Fixed rate obligations

Schedule of collateral pledged for repurchase agreements

Repurchase Agreements, Securities Lending Transactions, and Repurchase-to-Maturity Transactions

Accounted for as Secured Borrowings

	Remaining Contractual Maturity of the Agreements
	As of June 30, 2015 (Successor Company)
	(Dollars In Thousands)
	Overnight and						Greater Than
	Continuous		Up to 30 days		30-90 days		90 days		Total
Repurchase agreements and repurchase-to-maturity transactions
U.S. Treasury and agency securities	$	98,345	$	—	$	—	$	—	$	98,345
State and municipal securities	—		—		—		—		—
Other asset-backed securities	—		—		—		—		—
Corporate securities	—		107,781		—		—		107,781
Equity securities	—		—		—		—		—
Non-U.S. sovereign debt	—		—		—		—		—
Mortgage loans	451,246		—		—		—		451,246
Other asset-backed securities	—		—		—		—		—
Total borrowings	$	549,591	$	107,781	$	—	$	—	$	657,372

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2015

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

15.FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company determined the fair value of its financial instruments based on the fair value hierarchy established in FASB guidance referenced in the Fair Value Measurements and Disclosures Topic which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company has adopted the provisions from the FASB guidance that is referenced in the Fair Value Measurements and Disclosures Topic for non-financial assets and liabilities (such as property and equipment, goodwill, and other intangible assets) that are required to be measured at fair value on a periodic basis. The effect on the Company’s periodic fair value measurements for non-financial assets and liabilities was not material.

The Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into a three level hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.

Financial assets and liabilities recorded at fair value on the consolidated balance sheets are categorized as follows:

· Level 1: Unadjusted quoted prices for identical assets or liabilities in an active market.

· Level 2: Quoted prices in markets that are not active or significant inputs that are observable either directly or indirectly. Level 2 inputs include the following:

a) Quoted prices for similar assets or liabilities in active markets

b) Quoted prices for identical or similar assets or liabilities in non-active markets

c) Inputs other than quoted market prices that are observable

d) Inputs that are derived principally from or corroborated by observable market data through correlation or other means.

· Level 3: Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

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, 2015 (Successor Company):

	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities - available-for-sale
Residential mortgage-backed securities	$	—	$	1,576,823	$	3	$	1,576,826
Commercial mortgage-backed securities	—		1,203,156		—		1,203,156
Other asset-backed securities	—		208,586		590,885		799,471
U.S. government-related securities	1,091,530		510,000		—		1,601,530
State, municipalities, and political subdivisions	—		1,585,068		—		1,585,068
Other government-related securities	—		18,782		—		18,782
Corporate securities	82		25,057,864		1,111,431		26,169,377
Preferred stock	61,667		—		—		61,667
Total fixed maturity securities - available-for-sale	1,153,279		30,160,279		1,702,319		33,015,877
Fixed maturity securities - trading
Residential mortgage-backed securities	—		298,138		—		298,138
Commercial mortgage-backed securities	—		146,314		—		146,314
Other asset-backed securities	—		108,837		160,594		269,431
U.S. government-related securities	236,424		4,840		—		241,264
State, municipalities, and political subdivisions	—		307,411		—		307,411
Other government-related securities	—		58,090		—		58,090
Corporate securities	—		1,399,192		19,316		1,418,508
Preferred stock	7,576		—		—		7,576
Total fixed maturity securities - trading	244,000		2,322,822		179,910		2,746,732
Total fixed maturity securities	1,397,279		32,483,101		1,882,229		35,762,609
Equity securities	641,429		11,308		69,720		722,457
Other long-term investments(1)	109,761		115,590		169,596		394,947
Short-term investments	191,745		12,922		—		204,667
Total investments	2,340,214		32,622,921		2,121,545		37,084,680
Cash	568,776		—		—		568,776
Other assets	17,835		—		—		17,835
Assets related to separate accounts
Variable annuity	13,313,000		—		—		13,313,000
Variable universal life	859,114		—		—		859,114
Total assets measured at fair value on a recurring basis	$	17,098,939	$	32,622,921	$	2,121,545	$	51,843,405
Liabilities:
Annuity account balances(2)	$	—	$	—	$	95,178	$	95,178
Other liabilities (1)	71,454		19,352		427,765		518,571
Total liabilities measured at fair value on a recurring basis	$	71,454	$	19,352	$	522,943	$	613,749

(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, 2014 (Predecessor Company):

	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities - available-for-sale
Residential mortgage-backed securities	$	—	$	1,418,255	$	3	$	1,418,258
Commercial mortgage-backed securities	—		1,177,252		—		1,177,252
Other asset-backed securities	—		275,415		563,961		839,376
U.S. government-related securities	1,165,188		263,707		—		1,428,895
State, municipalities, and political subdivisions	—		1,684,014		3,675		1,687,689
Other government-related securities	—		20,172		—		20,172
Corporate securities	132		26,059,712		1,325,683		27,385,527
Total fixed maturity securities - available-for-sale	1,165,320		30,898,527		1,893,322		33,957,169
Fixed maturity securities - trading
Residential mortgage-backed securities	—		288,114		—		288,114
Commercial mortgage-backed securities	—		151,111		—		151,111
Other asset-backed securities	—		105,118		169,461		274,579
U.S. government-related securities	245,563		4,898		—		250,461
State, municipalities, and political subdivisions	—		325,446		—		325,446
Other government-related securities	—		57,032		—		57,032
Corporate securities	—		1,447,333		24,744		1,472,077
Total fixed maturity securities - trading	245,563		2,379,052		194,205		2,818,820
Total fixed maturity securities	1,410,883		33,277,579		2,087,527		36,775,989
Equity securities	630,910		99,266		73,054		803,230
Other long-term investments (1)	119,997		106,079		67,894		293,970
Short-term investments	244,100		6,545		—		250,645
Total investments	2,405,890		33,489,469		2,228,475		38,123,834
Cash	379,411		—		—		379,411
Other assets	11,669		—		—		11,669
Assets related to separate accounts
Variable annuity	13,157,429		—		—		13,157,429
Variable universal life	834,940		—		—		834,940
Total assets measured at fair value on a recurring basis	$	16,789,339	$	33,489,469	$	2,228,475	$	52,507,283
Liabilities:
Annuity account balances (2)	$	—	$	—	$	97,825	$	97,825
Other liabilities (1)	62,146		3,741		754,852		820,739
Total liabilities measured at fair value on a recurring basis	$	62,146	$	3,741	$	852,677	$	918,564

(1)Includes certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

Determination of fair values

The valuation methodologies used to determine the fair values of assets and liabilities reflect market participant assumptions and are based on the application of the fair value hierarchy that prioritizes observable market inputs over unobservable inputs. The Company determines the fair values of certain financial assets and financial liabilities based on quoted market prices, where available. The Company also determines certain fair values based on future cash flows discounted at the appropriate current market rate. Fair values reflect adjustments for counterparty credit quality, the Company’s credit standing, liquidity, and where appropriate, risk margins on unobservable parameters. The following is a discussion of the methodologies used to determine fair values for the financial instruments as listed in the above table.

The fair value of fixed maturity, short-term, and equity securities is determined by management after considering one of three primary sources of information: third party pricing services, non-binding independent broker quotations, or pricing matrices. Security pricing is applied using a “waterfall” approach whereby publicly available prices are first sought from third party pricing services, the remaining unpriced securities are submitted to independent brokers for non-binding prices, or lastly, securities are priced using a pricing matrix. Typical inputs used by these three pricing methods include, but are not limited to: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. Third party pricing services price approximately 90% of the Company’s available-for-sale and trading fixed maturity securities. Based on the typical trading volumes and the lack of quoted market prices for available-for-sale and trading fixed maturities, third party pricing services derive the majority of security prices from observable market inputs such as recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information outlined above. If there are no recent reported trades, the third party pricing services and brokers may use matrix or model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Certain securities are priced via independent non-binding broker quotations, which are considered to have no significant unobservable inputs. When using non- binding independent broker quotations, the Company obtains one quote per security, typically from the broker from which we purchased the security. A pricing matrix is used to price securities for which the Company is unable to obtain or effectively rely on either a price from a third party pricing service or an independent broker quotation.

The pricing matrix used by the Company begins with current spread levels to determine the market price for the security. The credit spreads, assigned by brokers, incorporate the issuer’s credit rating, liquidity discounts, weighted- average of contracted cash flows, risk premium, if warranted, due to the issuer’s industry, and the security’s time to maturity. The Company uses credit ratings provided by nationally recognized rating agencies.

For securities that are priced via non-binding independent broker quotations, the Company assesses whether prices received from independent brokers represent a reasonable estimate of fair value through an analysis using internal and external cash flow models developed based on spreads and, when available, market indices. The Company uses a market-based cash flow analysis to validate the reasonableness of prices received from independent brokers. These analytics, which are updated daily, incorporate various metrics (yield curves, credit spreads, prepayment rates, etc.) to determine the valuation of such holdings. As a result of this analysis, if the Company determines there is a more appropriate fair value based upon the analytics, the price received from the independent broker is adjusted accordingly. The Company did not adjust any quotes or prices received from brokers during the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company).

The Company has analyzed the third party pricing services’ valuation methodologies and related inputs and has also evaluated the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs that is in accordance with the Fair Value Measurements and Disclosures Topic of the ASC. Based on this evaluation and investment class analysis, each price was classified into Level 1, 2, or 3. Most prices provided by third party pricing services are classified into Level 2 because the significant inputs used in pricing the securities are market observable and the observable inputs are corroborated by the Company. Since the matrix pricing of certain debt securities includes significant non-observable inputs, they are classified as Level 3.

Asset-Backed Securities

This category mainly consists of residential mortgage-backed securities, commercial mortgage-backed securities, and other asset-backed securities (collectively referred to as asset-backed securities or “ABS”). As of June 30, 2015 (Successor Company), the Company held $3.5 billion of ABS classified as Level 2. These securities are priced from information provided by a third party pricing service and independent broker quotes. The third party pricing services and brokers mainly value securities using both a market and income approach to valuation. As part of this valuation process they consider the following characteristics of the item being measured to be relevant inputs: 1) weighted-average coupon rate, 2) weighted-average years to maturity, 3) types of underlying assets, 4) weighted-average coupon rate of the underlying assets, 5) weighted-average years to maturity of the underlying assets, 6) seniority level of the tranches owned, and 7) credit ratings of the securities.

After reviewing these characteristics of the ABS, the third party pricing service and brokers use certain inputs to determine the value of the security. For ABS classified as Level 2, the valuation would consist of predominantly market observable inputs such as, but not limited to: 1) monthly principal and interest payments on the underlying assets, 2) average life of the security, 3) prepayment speeds, 4) credit spreads, 5) treasury and swap yield curves, and 6) discount margin. The Company reviews the methodologies and valuation techniques (including the ability to observe inputs) in assessing the information received from external pricing services and in consideration of the fair value presentation.

As of June 30, 2015 (Successor Company), the Company held $751.5 million of Level 3 ABS, which included $590.9 million of other asset-backed securities classified as available-for-sale and $160.6 million of other asset-backed securities classified as trading. These securities are predominantly ARS whose underlying collateral is at least 97% guaranteed by the FFELP. As a result of the ARS market collapse during 2008, the Company prices its ARS using an income approach valuation model. As part of the valuation process the Company reviews the following characteristics of the ARS in determining the relevant inputs: 1) weighted-average coupon rate, 2) weighted-average years to maturity, 3) types of underlying assets, 4) weighted-average coupon rate of the underlying assets, 5) weighted-average years to maturity of the underlying assets, 6) seniority level of the tranches owned, 7) credit ratings of the securities, 8) liquidity premium, and 9) paydown rate.

Corporate Securities, U.S. Government-Related Securities, States, Municipals, and Political Subdivisions, and Other Government Related Securities

As of June 30, 2015 (Successor Company), the Company classified approximately $28.9 billion of corporate securities, U.S. government-related securities, states, municipals, and political subdivisions, and other government-related securities as Level 2. The fair value of the Level 2 securities is predominantly priced by broker quotes and a third party pricing service. The Company has reviewed the valuation techniques of the brokers and third party pricing service and has determined that such techniques used Level 2 market observable inputs. The following characteristics of the securities are considered to be the primary relevant inputs to the valuation: 1) weighted- average coupon rate, 2) weighted-average years to maturity, 3) seniority, and 4) credit ratings. The Company reviews the methodologies and valuation techniques (including the ability to observe inputs) in assessing the information received from external pricing services and in consideration of the fair value presentation.

The brokers and third party pricing service utilize valuation models that consist of a hybrid income and market approach to valuation. The pricing models utilize the following inputs: 1) principal and interest payments, 2) treasury yield curve, 3) credit spreads from new issue and secondary trading markets, 4) dealer quotes with adjustments for issues with early redemption features, 5) liquidity premiums present on private placements, and 6) discount margins from dealers in the new issue market.

As of June 30, 2015 (Successor Company), the Company classified approximately $1.1 billion of securities as Level 3 valuations. Level 3 securities primarily represent investments in illiquid bonds for which no price is readily available. To determine a price, the Company uses a discounted cash flow model with both observable and unobservable inputs. These inputs are entered into an industry standard pricing model to determine the final price of the security. These inputs include: 1) principal and interest payments, 2) coupon rate, 3) sector and issuer level spread over treasury, 4) underlying collateral, 5) credit ratings, 6) maturity, 7) embedded options, 8) recent new issuance, 9) comparative bond analysis, and 10) an illiquidity premium.

Equities

As of June 30, 2015 (Successor Company), the Company held approximately $81.0 million of equity securities classified as Level 2 and Level 3. Of this total, $65.7 million represents Federal Home Loan Bank (“FHLB”) stock. The Company believes that the cost of the FHLB stock approximates fair value. The remainder of these equity securities is primarily investments in preferred stock.

Other Long-Term Investments and Other Liabilities

Other long-term investments and other liabilities consist entirely of free-standing and embedded derivative financial instruments. Refer to Note 16, Derivative Financial Instruments for additional information related to derivatives. Derivative financial instruments are valued using exchange prices, independent broker quotations, or pricing valuation models, which utilize market data inputs. Excluding embedded derivatives, as of June 30, 2015 (Successor Company), 100% of derivatives based upon notional values were priced using exchange prices or independent broker quotations. The remaining derivatives were priced by pricing valuation models, which predominantly utilize observable market data inputs. Inputs used to value derivatives include, but are not limited to, interest swap rates, credit spreads, interest rate and equity market volatility indices, equity index levels, and treasury rates. The Company performs monthly analysis on derivative valuations that includes both quantitative and qualitative analyses.

Derivative instruments classified as Level 1 generally include futures and options, which are traded on active exchange markets.

Derivative instruments classified as Level 2 primarily include interest rate and inflation swaps, options, and swaptions. These derivative valuations are determined using independent broker quotations, which are corroborated with observable market inputs.

Derivative instruments classified as Level 3 were embedded derivatives and include at least one significant non-observable input. A derivative instrument containing Level 1 and Level 2 inputs will be classified as a Level 3 financial instrument in its entirety if it has at least one significant Level 3 input.

The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instruments may not be classified within the same fair value hierarchy level as the associated assets and liabilities. Therefore, the changes in fair value on derivatives reported in Level 3 may not reflect the offsetting impact of the changes in fair value of the associated assets and liabilities.

The embedded derivatives are carried at fair value in “other long-term investments” and “other liabilities” on the Company’s consolidated condensed balance sheet. The changes in fair value are recorded in earnings as “Realized investment gains (losses)—Derivative financial instruments”. Refer to Note 16, Derivative Financial Instruments for more information related to each embedded derivatives gains and losses.

The fair value of the GMWB embedded derivative is derived through the income method of valuation using a valuation model that projects future cash flows using multiple risk neutral stochastic equity scenarios and policyholder behavior assumptions. The risk neutral scenarios are generated using the current swap curve and projected equity volatilities and correlations. The projected equity volatilities are based on a blend of historical volatility and near- term equity market implied volatilities. The equity correlations are based on historical price observations. For policyholder behavior assumptions, expected lapse and utilization assumptions are used and updated for actual experience, as necessary. The Company assumes age-based mortality from the National Association of Insurance Commissioners 1994 Variable Annuity MGDB Mortality Table for company experience, with attained age factors varying from 44.5% - 100%. The present value of the cash flows is determined using the discount rate curve, which is based upon LIBOR plus a credit spread (to represent the Company’s non-performance risk). As a result of using significant unobservable inputs, the GMWB embedded derivative is categorized as Level 3. These assumptions are reviewed on a quarterly basis.

The balance of the FIA embedded derivative is impacted by policyholder cash flows associated with the FIA product that are allocated to the embedded derivative in addition to changes in the fair value of the embedded derivative during the reporting period. The fair value of the FIA embedded derivative is derived through the income method of valuation using a valuation model that projects future cash flows using current index values and volatility, the hedge budget used to price the product, and policyholder assumptions (both elective and non-elective). For policyholder behavior assumptions, expected lapse and withdrawal assumptions are used and updated for actual experience, as necessary. The Company assumes age-based mortality from the 1994 Variable Annuity MGDB mortality table modified for company experience, with attained age factors varying from 49% - 80%. The present value of the cash flows is determined using the discount rate curve, which is based upon LIBOR up to one year and constant maturity treasury rates plus a credit spread (to represent the Company’s non-performance risk) thereafter. Policyholder assumptions are reviewed on an annual basis. As a result of using significant unobservable inputs, the FIA embedded derivative is categorized as Level 3.

The balance of the indexed universal life (“IUL”) embedded derivative is impacted by policyholder cash flows associated with the IUL product that are allocated to the embedded derivative in addition to changes in the fair value of the embedded derivative during the reporting period. The fair value of the IUL embedded derivative is derived through the income method of valuation using a valuation model that projects future cash flows using current index values and volatility, the hedge budget used to price the product, and policyholder assumptions (both elective and non-elective). For policyholder behavior assumptions, expected lapse and withdrawal assumptions are used and updated for actual experience, as necessary. The Company assumes age-based mortality from the SOA 2014 VBT Primary Tables modified for company experience, with attained age factors varying from 44% - 137%. The present value of the cash flows is determined using the discount rate curve, which is based upon LIBOR up to one year and constant maturity treasury rates plus a credit spread (to represent the Company’s non-performance risk) thereafter. Policyholder assumptions are reviewed on an annual basis. As a result of using significant unobservable inputs, the IUL embedded derivative is categorized as Level 3.

The Company has assumed and ceded certain blocks of policies under modified coinsurance agreements in which the investment results of the underlying portfolios inure directly to the reinsurers. As a result, these agreements contain embedded derivatives that are reported at fair value. Changes in their fair value are reported in earnings. The investments supporting these agreements are designated as “trading securities”; therefore changes in their fair value are also reported in earnings. The fair value of the embedded derivative is the difference between the statutory policy liabilities (net of policy loans) of $2.5 billion and the fair value of the trading securities of $2.7 billion. As a result, changes in the fair value of the embedded derivatives are largely offset by the changes in fair value of the related investments and each are reported in earnings. The fair value of the embedded derivative is considered a Level 3 valuation due to the unobservable nature of the policy liabilities.

Annuity Account Balances

The Company records certain of its FIA reserves at fair value. The fair value is considered a Level 3 valuation. The FIA valuation model calculates the present value of future benefit cash flows less the projected future profits to quantify the net liability that is held as a reserve. This calculation is done using multiple risk neutral stochastic equity scenarios. The cash flows are discounted using LIBOR plus a credit spread. Best estimate assumptions are used for partial withdrawals, lapses, expenses and asset earned rate with a risk margin applied to each. These assumptions are reviewed at least annually as a part of the formal unlocking process. If an event were to occur within a quarter that would make the assumptions unreasonable, the assumptions would be reviewed within the quarter.

The discount rate for the fixed indexed annuities is based on an upward sloping rate curve which is updated each quarter. The discount rates for June 30, 2015 (Successor Company), ranged from a one month rate of 0.35%, a 5 year rate of 2.47%, and a 30 year rate of 3.98%. A credit spread component is also included in the calculation to accommodate non-performance risk.

Separate Accounts

Separate account assets are invested in open-ended mutual funds and are included in Level 1.

Valuation of Level 3 Financial Instruments

The following table presents the valuation method for material financial instruments included in Level 3, as well as the unobservable inputs used in the valuation of those financial instruments:

	Successor
	Company
	Fair Value
	As of		Valuation	Unobservable	Range
	June 30, 2015		Technique	Input	(Weighted Average)
	(Dollars In Thousands)
Assets:
Other asset-backed securities	$	590,885	Discounted cash flow	Liquidity premium	0.55% - 1.50% (1.03%)
				Paydown rate	9.95% - 14.69% (12.57%)
Corporate securities	1,084,954		Discounted cash flow	Spread over	0.58% - 12.00% (2.25%)
				Treasury
Embedded derivatives - GMWB(1)	59,888		Actuarial cash flow model	Mortality	1994 MGDB table with
					company experience
				Lapse	0.29% - 17%, depending on
					product/duration/funded
					status of guarantee
				Utilization	99%. 10% of policies have a
					one-time over-utilization of
					400%
				Nonperformance risk	0.16% - 1.04%
Liabilities:
Annuity account balances(2)	$	95,178	Actuarial cash flow model	Asset earned rate	3.71% - 5.77%
				Expenses	$80 per policy
				Withdrawal rate	2.20%
				Mortality	1994 MGDB table with
					company experience
				Lapse	2.2% - 33.0%, depending
					on duration/surrender
					charge period
				Return on assets	1.50% - 1.85% depending on
					duration/surrender
					charge period
				Nonperformance risk	0.16% - 1.04%
Embedded derivative - FIA	85,129		Actuarial cash flow model	Expenses	$80 per policy
				Withdrawal rate	1.1% - 4.5% depending on
					duration and tax qualification
				Mortality	1994 MGDB table with
					company experience
				Lapse	2.5% - 40.0%, depending
					on duration/surrender
					charge period
				Nonperformance risk	0.16% - 1.04%
Embedded derivative - IUL	11,902		Actuarial cash flow model	Mortality	44% - 137% of 2014
					VBT Primary Tables
				Lapse	0.5% - 10.0%, depending on
					duration/distribution channel
					and smoking class
				Nonperformance risk	0.16% - 1.04%

(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.

The chart above excludes Level 3 financial instruments that are valued using broker quotes and those which book value approximates fair value.

The Company has considered all reasonably available quantitative inputs as of June 30, 2015 (Successor Company), but the valuation techniques and inputs used by some brokers in pricing certain financial instruments are not shared with the Company. This resulted in $209.4 million of financial instruments being classified as Level 3 as of June 30, 2015 (Successor Company). Of the $209.4 million, $160.6 million are other asset-backed securities, $45.8 million are corporate securities, and $3.0 million are equity securities.

In certain cases the Company has determined that book value materially approximates fair value. As of June 30, 2015 (Successor Company), the Company held $66.7 million of financial instruments where book value approximates fair value. Of the $66.7 million, the entirety of this balance represents equity securities, which are predominantly FHLB stock.

The following table presents the valuation method for material financial instruments included in Level 3, as well as the unobservable inputs used in the valuation of those financial instruments:

	Predecessor
	Company
	Fair Value
	As of		Valuation	Unobservable	Range
	December 31, 2014		Technique	Input	(Weighted Average)
	(Dollars In Thousands)
Assets:
Other asset-backed securities	$	563,752	Discounted cash flow	Liquidity premium	0.39% - 1.49% (0.69%)
				Paydown rate	9.70% - 15.80% (12.08%)
Corporate securities	1,282,864		Discounted cash flow	Spread over	0.33% - 7.50% (2.19%)
				treasury
Liabilities:
Embedded derivatives - GMWB(1)	$	245,090	Actuarial cash flow model	Mortality	44.5% to 100% of 1994
					MGDB table
				Lapse	0.25% - 17%, depending on
					product/duration/funded
					status of guarantee
				Utilization	97% - 101%
				Nonperformance risk	0.12% - 0.96%
Annuity account balances(2)	97,825		Actuarial cash flow model	Asset earned rate	3.86% - 5.92%
				Expenses	$88 - $102 per policy
				Withdrawal rate	2.20%
				Mortality	49% to 80% of 1994
					MGDB table
				Lapse	2.2% - 33.0%, depending
					on duration/surrender
					charge period
				Return on assets	1.50% - 1.85% depending on
					surrender charge period
				Nonperformance risk	0.12% - 0.96%
Embedded derivative - FIA	124,465		Actuarial cash flow model	Expenses	$83 - $97 per policy
				Withdrawal rate	1.1% - 4.5% depending on
					duration and tax qualification
				Mortality	49% to 80% of 1994
					MGDB table
				Lapse	2.5% - 40.0%, depending
					on duration/surrender
					charge period
				Nonperformance risk	0.12% - 0.96%
Embedded derivative - IUL	6,691		Actuarial cash flow model	Mortality	37% - 74% of 2008
					VBT Primary Tables
				Lapse	0.5% - 10.0%, depending
					on duration/distribution
					channel and smoking class
				Nonperformance risk	0.12% - 0.96%

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

(2)Represents liabilities related to fixed indexed annuities.

The chart above excludes Level 3 financial instruments that are valued using broker quotes and those which book value approximates fair value.

The Company has considered all reasonably available quantitative inputs as of December 31, 2014 (Predecessor Company), but the valuation techniques and inputs used by some brokers in pricing certain financial instruments are not shared with the Company. This resulted in $240.3 million of financial instruments being classified as Level 3 as of December 31, 2014 (Predecessor Company). Of the $240.3 million, $169.7 million are other asset-backed securities, $67.6 million are corporate bonds, and $3.0 million are equity securities.

In certain cases the Company has determined that book value materially approximates fair value. As of December 31, 2014 (Predecessor Company), the Company held $73.7 million of financial instruments where book value approximates fair value. Of the $73.7 million, $70.0 million represents equity securities, which are predominantly FHLB stock, and $3.7 million of other fixed maturity securities.

The asset-backed securities classified as Level 3 are predominantly ARS. A change in the paydown rate (the projected annual rate of principal reduction) of the ARS can significantly impact the fair value of these securities. A decrease in the paydown rate would increase the projected weighted average life of the ARS and increase the sensitivity of the ARS’ fair value to changes in interest rates. An increase in the liquidity premium would result in a decrease in the fair value of the securities, while a decrease in the liquidity premium would increase the fair value of these securities.

The fair value of corporate bonds classified as Level 3 is sensitive to changes in the interest rate spread over the corresponding U.S. Treasury rate. This spread represents a risk premium that is impacted by company specific and market factors. An increase in the spread can be caused by a perceived increase in credit risk of a specific issuer and/or an increase in the overall market risk premium associated with similar securities. The fair values of corporate bonds are sensitive to changes in spread. When holding the treasury rate constant, the fair value of corporate bonds increases when spreads decrease, and decreases when spreads increase.

The fair value of the GMWB embedded derivative is sensitive to changes in the discount rate which includes the Company’s nonperformance risk, volatility, lapse, and mortality assumptions. The volatility assumption is an observable input as it is based on market inputs. The Company’s nonperformance risk, lapse, and mortality are unobservable. An increase in the three unobservable assumptions would result in a decrease in the fair value of the liability and conversely, if there is a decrease in the assumptions the fair value would increase. The fair value is also dependent on the assumed policyholder utilization of the GMWB where an increase in assumed utilization would result in an increase in the fair value of the liability and conversely, if there is a decrease in the assumption, the fair value would decrease.

The fair value of the FIA account balance liability is predominantly impacted by observable inputs such as discount rates and equity returns. However, the fair value of the FIA embedded derivative is sensitive to non-performance risk, which is unobservable. The value of the liability increases with decreases in discount rate and non-performance risk and decreases with increases in the discount rate and non-performance risk. The value of the liability increases with increases in equity returns and the liability decreases with a decrease in equity returns.

The fair value of the FIA embedded derivative is predominantly impacted by observable inputs such as discount rates and equity returns. However, the fair value of the FIA embedded derivative is sensitive to non-performance risk, which is unobservable. The value of the liability increases with decreases in the discount rate and non-performance risk and decreases with increases in the discount rate and nonperformance risk. The value of the liability increases with increases in equity returns and the liability decreases with a decrease in equity returns.

The fair value of the IUL embedded derivative is predominantly impacted by observable inputs such as discount rates and equity returns. However, the fair value of the IUL embedded derivative is sensitive to non-performance risk, which is unobservable. The value of the liability increases with decreases in the discount rate and non-performance risk and decreases with increases in the discount rate and non-performance risk. The value of the liability increases with increases in equity returns and the liability decreases with a decrease in equity returns.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the three months ended June 30, 2015 (Successor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total
																														Gains (losses)
																														included in
			Total				Total																							Earnings
			Realized and Unrealized				Realized and Unrealized																							related to
			Gains				Losses																							Instruments
					Included in					Included in																				still held at
					Other					Other												Transfers								the
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of						Ending		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	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	600,132		—		165		(92		)	(9,323		)	—		(87		)	—		—		—			90			590,885		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	1,283,142		3,656		4,001		(687		)	(24,247		)	89,929		(219,148		)	—		—		(21,803		)	(3,412		)	1,111,431		—
Total fixed maturity securities - available-for-sale	1,883,277		3,656		4,166		(779		)	(33,570		)	89,929		(219,235		)	—		—		(21,803		)	(3,322		)	1,702,319		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	170,500		589		—		(5,173		)	—			—		(5,468		)	—		—		—			146			160,594		(4,587		)
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	19,614		140		—		(233		)	—			—		(161		)	—		—		—			(44		)	19,316		(93		)
Total fixed maturity securities - trading	190,114		729		—		(5,406		)	—			—		(5,629		)	—		—		—			102			179,910		(4,680		)
Total fixed maturity securities	2,073,391		4,385		4,166		(6,185		)	(33,570		)	89,929		(224,864		)	—		—		(21,803		)	(3,220		)	1,882,229		(4,680		)
Equity securities	69,951		—		—		—			—			—		(231		)	—		—		—			—			69,720		—
Other long-term investments(1)	122,894		46,702		—		—			—			—		—			—		—		—			—			169,596		46,702
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	2,266,236		51,087		4,166		(6,185		)	(33,570		)	89,929		(225,095		)	—		—		(21,803		)	(3,220		)	2,121,545		42,022
Total assets measured at fair value on a recurring basis	$	2,266,236	$	51,087	$	4,166	$	(6,185	)	$	(33,570	)	$	89,929	$	(225,095	)	$	—	$	—	$	(21,803	)	$	(3,220	)	$	2,121,545	$	42,022
Liabilities:
Annuity account balances(2)	$	97,108	$	—	$	—	$	(911	)	$	—		$	—	$	—		$	72	$	2,913	$	—		$	—		$	95,178	$	—
Other liabilities(1)	627,515		224,194		—		(24,444		)	—			—		—			—		—		—			—			427,765		199,750
Total liabilities measured at fair value on a recurring basis	$	724,623	$	224,194	$	—	$	(25,355	)	$	—		$	—	$	—		$	72	$	2,913	$	—		$	—		$	522,943	$	199,750

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

For the three months ended June 30, 2015 (Successor Company), there were no transfers of securities into Level 3.

For the three months ended June 30, 2015 (Successor Company), $21.8 million of securities were transferred into Level 2. This amount was transferred from Level 3. These transfers resulted from securities that were priced internally using significant unobservable inputs where market observable inputs were no longer available in previous periods but were priced by independent pricing services or brokers as of June 30, 2015 (Successor Company).

For the three months ended June 30, 2015 (Successor Company), there were no transfers of securities from Level 2 to Level 1.

For the three months ended June 30, 2015 (Successor Company), there were no transfers of securities from Level 1.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the period of February 1, 2015 to June 30, 2015 (Successor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total
																														Gains (losses)
																														included in
			Total				Total																							Earnings
			Realized and Unrealized				Realized and Unrealized																							related to
			Gains				Losses																							Instruments
					Included in					Included in																				still held at
					Other					Other												Transfers								the
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of						Ending		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	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	603,646		—		165		(92		)	(12,891		)	—		(127		)	—		—		—			184			590,885		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		(3,675		)	—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	1,307,259		4,291		15,619		(687		)	(24,247		)	111,929		(254,935		)	—		—		(41,853		)	(5,945		)	1,111,431		—
Total fixed maturity securities - available-for-sale	1,914,583		4,291		15,784		(779		)	(37,138		)	111,929		(258,737		)	—		—		(41,853		)	(5,761		)	1,702,319		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	169,473		3,949		—		(5,173		)	—			—		(7,876		)	—		—		—			221			160,594		(5,829		)
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	25,130		174		—		(299		)	—			—		(5,584		)	—		—		—			(105		)	19,316		(1,180		)
Total fixed maturity securities - trading	194,603		4,123		—		(5,472		)	—			—		(13,460		)	—		—		—			116			179,910		(7,009		)
Total fixed maturity securities	2,109,186		8,414		15,784		(6,251		)	(37,138		)	111,929		(272,197		)	—		—		(41,853		)	(5,645		)	1,882,229		(7,009		)
Equity securities	73,044		—		—		—			—			—		(231		)	—		—		—			(3,093		)	69,720		—
Other long-term investments(1)	93,274		76,342		—		(20		)	—			—		—			—		—		—			—			169,596		76,322
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	2,275,504		84,756		15,784		(6,271		)	(37,138		)	111,929		(272,428		)	—		—		(41,853		)	(8,738		)	2,121,545		69,313
Total assets measured at fair value on a recurring basis	$	2,275,504	$	84,756	$	15,784	$	(6,271	)	$	(37,138	)	$	111,929	$	(272,428	)	$	—	$	—	$	(41,853	)	$	(8,738	)	$	2,121,545	$	69,313
Liabilities:
Annuity account balances(2)	$	98,279	$	—	$	—	$	(1,544	)	$	—		$	—	$	—		$	86	$	4,731	$	—		$	—		$	95,178	$	—
Other liabilities(1)	742,130		358,811		—		(44,446		)	—			—		—			—		—		—			—			427,765		314,365
Total liabilities measured at fair value on a recurring basis	$	840,409	$	358,811	$	—	$	(45,990	)	$	—		$	—	$	—		$	86	$	4,731	$	—		$	—		$	522,943	$	314,365

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

For the period of February 1, 2015 to June 30, 2015 (Successor Company), there were no transfers of securities into Level 3.

For the period of February 1, 2015 to June 30, 2015 (Successor Company), $41.9 million of securities were transferred into Level 2. This amount was transferred from Level 3. These transfers resulted from securities that were priced internally using significant unobservable inputs where market observable inputs were no longer available in previous periods but were priced by independent pricing services or brokers as of June 30, 2015 (Successor Company).

For the period of February 1, 2015 to June 30, 2015 (Successor Company), $90.4 million of securities were transferred from Level 2 to Level 1.

For the period of February 1, 2015 to June 30, 2015 (Successor Company), there were no transfers from Level 1.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for period of January 1, 2015 to January 31, 2015 (Predecessor Company), for which the Company has used significant unobservable inputs (Level 3):

																													Total
																													Gains (losses)
																													included in
			Total				Total																						Earnings
			Realized and Unrealized				Realized and Unrealized																						related to
			Gains				Losses																						Instruments
					Included in					Included in																			still held at
					Other					Other												Transfers							the
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of					Ending		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	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—	$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	563,961		—		—		—			(3,867		)	—		(32		)	—		—		43,205		379			603,646		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		—			—		—		—		—			3,675		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Corporate securities	1,325,683		—		12,282		—			(23,029		)	—		(7,062		)	—		—		—		(615		)	1,307,259		—
Total fixed maturity securities - available-for-sale	1,893,322		—		12,282		—			(26,896		)	—		(7,094		)	—		—		43,205		(236		)	1,914,583		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	169,461		586		—		(139		)	—			—		(472		)	—		—		—		37			169,473		447
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—		—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Corporate securities	24,744		602		—		(196		)	—			—		(20		)	—		—		—		—			25,130		406
Total fixed maturity securities - trading	194,205		1,188		—		(335		)	—			—		(492		)	—		—		—		37			194,603		853
Total fixed maturity securities	2,087,527		1,188		12,282		(335		)	(26,896		)	—		(7,586		)	—		—		43,205		(199		)	2,109,186		853
Equity securities	73,054		—		—		—			(10		)	—		—			—		—		—		—			73,044		—
Other long-term investments(1)	67,894		753		—		(25,902		)	—			—		—			—		—		—		—			42,745		(25,149		)
Short-term investments	—		—		—		—			—			—		—			—		—		—		—			—		—
Total investments	2,228,475		1,941		12,282		(26,237		)	(26,906		)	—		(7,586		)	—		—		43,205		(199		)	2,224,975		(24,296		)
Total assets measured at fair value on a recurring basis	$	2,228,475	$	1,941	$	12,282	$	(26,237	)	$	(26,906	)	$	—	$	(7,586	)	$	—	$	—	$	43,205	$	(199	)	$	2,224,975	$	(24,296	)
Liabilities:
Annuity account balances(2)	$	97,825	$	—	$	—	$	(536	)	$	—		$	—	$	—		$	7	$	419	$	—	$	—		$	97,949	$	—
Other liabilities(1)	754,852		61		—		(253,773		)	—			—		—			—		—		—		—			1,008,564		(253,712		)
Total liabilities measured at fair value on a recurring basis	$	852,677	$	61	$	—	$	(254,309	)	$	—		$	—	$	—		$	7	$	419	$	—	$	—		$	1,106,513	$	(253,712	)

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), $43.2 million of securities were transferred into Level 3. This amount was transferred from Level 2. These transfers resulted from securities that were priced by independent pricing services or brokers in previous periods, using no significant unobservable inputs, but were priced internally using significant unobservable inputs where market observable inputs were no longer available as of January 31, 2015 (Predecessor Company). All transfers are recognized as of the end of the period.

For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), there were no transfers from Level 3 to Level 2.

For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), there were no transfers from Level 2 to Level 1 and there were no transfers out of Level 1.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the three months ended June 30, 2014 (Predecessor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total
																														Gains (losses)
																														included in
			Total				Total																							Earnings
			Realized and Unrealized				Realized and Unrealized																							related to
			Gains				Losses																							Instruments
					Included in					Included in																				still held at
					Other					Other												Transfers								the
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of						Ending		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	$	17	$	—	$	—	$	—		$	—		$	—	$	(7	)	$	—	$	—	$	—		$	—		$	10	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	548,805		—		29,929		—			(104		)	—		(9,534		)	—		—		—			(999		)	568,097		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		—			—		—		—			—			3,675		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	1,573,710		74		27,271		—			(2,250		)	60,845		(65,172		)	—		—		(67,478		)	(2,703		)	1,524,297		—
Total fixed maturity securities - available-for-sale	2,126,207		74		57,200		—			(2,354		)	60,845		(74,713		)	—		—		(67,478		)	(3,702		)	2,096,079		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			842		—			—		—		—			—			842		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	194,664		6,124		—		(2,686		)	—			—		(21,883		)	—		—		—			167			176,386		522
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	30,946		340		—		(40		)	—			4,059		(5,047		)	—		—		1,250			12			31,520		280
Total fixed maturity securities - trading	225,610		6,464		—		(2,726		)	—			4,901		(26,930		)	—		—		1,250			179			208,748		802
Total fixed maturity securities	2,351,817		6,538		57,200		(2,726		)	(2,354		)	65,746		(101,643		)	—		—		(66,228		)	(3,523		)	2,304,827		802
Equity securities	81,493		—		965		—			—			—		(674		)	—		—		—			—			81,784		—
Other long-term investments(1)	143,808		240		—		(20,747		)	—			—		—			—		—		—			—			123,301		(20,507		)
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	2,577,118		6,778		58,165		(23,473		)	(2,354		)	65,746		(102,317		)	—		—		(66,228		)	(3,523		)	2,509,912		(19,705		)
Total assets measured at fair value on a recurring basis	$	2,577,118	$	6,778	$	58,165	$	(23,473	)	$	(2,354	)	$	65,746	$	(102,317	)	$	—	$	—	$	(66,228	)	$	(3,523	)	$	2,509,912	$	(19,705	)
Liabilities:
Annuity account balances(2)	$	105,593	$	—	$	—	$	(1,714	)	$	—		$	—	$	—		$	63	$	4,914	$	—		$	—		$	102,456	$	—
Other liabilities(1)	371,365		13		—		(113,395		)	—			—		—			—		—		—			—			484,747		(113,382		)
Total liabilities measured at fair value on a recurring basis	$	476,958	$	13	$	—	$	(115,109	)	$	—		$	—	$	—		$	63	$	4,914	$	—		$	—		$	587,203	$	(113,382	)

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

For the three months ended June 30, 2014 (Predecessor Company), $1.3 million of securities were transferred into Level 3. This amount was transferred from Level 2. These transfers resulted from securities that were priced by independent pricing services or brokers in previous periods, using no significant unobservable inputs, but were priced internally using significant unobservable inputs where market observable inputs were no longer available as of June 30, 2014 (Predecessor Company).

For the three months ended June 30, 2014 (Predecessor Company), $67.5 million of securities were transferred into Level 2. This amount was transferred from Level 3. These transfers resulted from securities that were previously priced internally using significant unobservable inputs, now being priced by independent pricing services or brokers.

For the three months ended June 30, 2014 (Predecessor Company), there were no transfers from Level 2 to Level 1.

For the three months ended June 30, 2014 (Predecessor Company), there were no transfers from Level 1.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the six months ended June 30, 2014 (Predecessor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total
																														Gains (losses)
																														included in
			Total				Total																							Earnings
			Realized and Unrealized				Realized and Unrealized																							related to
			Gains				Losses																							Instruments
					Included in					Included in																				still held at
					Other					Other												Transfers								the
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of						Ending		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	$	28	$	—	$	—	$	—		$	—		$	—	$	(18	)	$	—	$	—	$	—		$	—		$	10	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	545,808		—		34,066		—			(1,233		)	—		(9,794		)	—		—		—			(750		)	568,097		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		—			—		—		—			—			3,675		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	1,549,940		969		54,288		—			(7,265		)	90,232		(103,039		)	—		—		(55,293		)	(5,535		)	1,524,297		—
Total fixed maturity securities - available-for-sale	2,099,451		969		88,354		—			(8,498		)	90,232		(112,851		)	—		—		(55,293		)	(6,285		)	2,096,079		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			842		—			—		—		—			—			842		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	194,977		6,851		—		(3,114		)	—			—		(22,695		)	—		—		—			367			176,386		654
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	29,199		878		—		(53		)	—			4,059		(5,110		)	—		—		2,522			25			31,520		—
Total fixed maturity securities - trading	224,176		7,729		—		(3,167		)	—			4,901		(27,805		)	—		—		2,522			392			208,748		654
Total fixed maturity securities	2,323,627		8,698		88,354		(3,167		)	(8,498		)	95,133		(140,656		)	—		—		(52,771		)	(5,893		)	2,304,827		654
Equity securities	71,881		—		1,192		—			(166		)	9,551		(674		)	—		—		—			—			81,784		—
Other long-term investments(1)	196,133		245		—		(73,077		)	—			—		—			—		—		—			—			123,301		(72,832		)
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	2,591,641		8,943		89,546		(76,244		)	(8,664		)	104,684		(141,330		)	—		—		(52,771		)	(5,893		)	2,509,912		(72,178		)
Total assets measured at fair value on a recurring basis	$	2,591,641	$	8,943	$	89,546	$	(76,244	)	$	(8,664	)	$	104,684	$	(141,330	)	$	—	$	—	$	(52,771	)	$	(5,893	)	$	2,509,912	$	(72,178	)
Liabilities:
Annuity account balances(2)	$	107,000	$	—	$	—	$	(3,123	)	$	—		$	—	$	—		$	175	$	7,842	$	—		$	—		$	102,456	$	—
Other liabilities(1)	270,630		25		—		(214,142		)	—			—		—			—		—		—			—			484,747		(214,117		)
Total liabilities measured at fair value on a recurring basis	$	377,630	$	25	$	—	$	(217,265	)	$	—		$	—	$	—		$	175	$	7,842	$	—		$	—		$	587,203	$	(214,117	)

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

For the six months ended June 30, 2014 (Predecessor Company), $31.0 million of securities were transferred into Level 3. This amount was transferred from Level 2. These transfers resulted from securities that were priced by independent pricing services or brokers in previous periods, using no significant unobservable inputs, but were priced internally using significant unobservable inputs where market observable inputs were no longer available as of June 30, 2014 (Predecessor Company). All transfers are recognized as of the end of the period.

For the six months ended June 30, 2014 (Predecessor Company), $83.8 million of securities were transferred into Level 2. This amount was transferred from Level 3. These transfers resulted from securities that were previously priced internally using significant unobservable inputs, now being priced by independent pricing services or brokers.

For the six months ended June 30, 2014 (Predecessor Company), there were no transfers from Level 2 to Level 1.

For the six months ended June 30, 2014 (Predecessor Company), there were no transfers out of Level 1.

Total realized and unrealized gains (losses) on Level 3 assets and liabilities are primarily reported in either realized investment gains (losses) within the consolidated condensed statements of income (loss) or other comprehensive income (loss) within shareowner’s equity based on the appropriate accounting treatment for the item.

Purchases, sales, issuances, and settlements, net, represent the activity that occurred during the period that results in a change of the asset or liability but does not represent changes in fair value for the instruments held at the beginning of the period. Such activity primarily relates to purchases and sales of fixed maturity securities and issuances and settlements of fixed indexed annuities.

The Company reviews the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in and out of Level 3 at the beginning fair value for the reporting period in which the changes occur. The asset transfers in the table(s) above primarily related to positions moved from Level 3 to Level 2 as the Company determined that certain inputs were observable.

The amount of total gains (losses) for assets and liabilities still held as of the reporting date primarily represents changes in fair value of trading securities and certain derivatives that exist as of the reporting date and the change in fair value of fixed indexed annuities.

Estimated Fair Value of Financial Instruments

The carrying amounts and estimated fair values of the Company’s financial instruments as of the periods shown below are as follows:

		Successor				Predecessor
		Company				Company
		As of				As of
		June 30, 2015				December 31, 2014
	Fair Value	Carrying				Carrying
	Level	Amounts		Fair Values		Amounts		Fair Values
		(Dollars In Thousands)				(Dollars In Thousands)
Assets:
Mortgage loans on real estate	3	$	5,677,667	$	5,542,878	$	5,133,780	$	5,524,059
Policy loans	3	1,719,864		1,719,864		1,758,237		1,758,237
Fixed maturities, held-to-maturity(1)	3	565,334		489,950		435,000		458,422
Liabilities:
Stable value product account balances	3	$	1,861,280	$	1,859,409	$	1,959,488	$	1,973,624
Annuity account balances	3	10,792,560		10,260,654		10,950,729		10,491,775
Debt:
Bank borrowings	3	$	545,000	$	545,000	$	450,000	$	450,000
Senior Notes	2	1,117,739		1,058,816		850,000		1,100,380
Subordinated debt securities	2	452,424		445,760		540,593		552,098
Non-recourse funding obligations(2)	3	656,299		590,305		582,404		578,212

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, $470.0 million, fair value of $469.7 million, as of June 30, 2015 (Successor Company) and $435.0 million, fair value of $461.4 million, as of December 31, 2014 (Predecessor Company), relates to non-recourse funding obligations issued by Golden Gate V.

Fair Value Measurements

Mortgage loans on real estate

The Company estimates the fair value of mortgage loans using an internally developed model. This model includes inputs derived by the Company based on assumed discount rates relative to the Company’s current mortgage loan lending rate and an expected cash flow analysis based on a review of the mortgage loan terms. The model also contains the Company’s determined representative risk adjustment assumptions related to credit and liquidity risks.

Policy loans

The Company believes the fair value of policy loans approximates book value. Policy loans are funds provided to policy holders in return for a claim on the policy. The funds provided are limited to the cash surrender value of the underlying policy. The nature of policy loans is to have a negligible default risk as the loans are fully collateralized by the value of the policy. Policy loans do not have a stated maturity and the balances and accrued interest are repaid either by the policyholder or with proceeds from the policy. Due to the collateralized nature of policy loans and unpredictable timing of repayments, the Company believes the fair value of policy loans approximates carrying value.

Fixed maturities, held-to-maturity

The Company estimates the fair value of its fixed maturity, held-to-maturity securities using internal discounted cash flow models. The discount rates used in the model were based on a current market yield for similar financial instruments.

Stable value product and Annuity account balances

The Company estimates the fair value of stable value product account balances and annuity account balances using models based on discounted expected cash flows. The discount rates used in the models were based on a current market rate for similar financial instruments.

Debt

Bank borrowings

The Company believes the carrying value of its bank borrowings approximates fair value as the borrowings pay a floating interest rate plus a spread based on the rating of the Company’s senior debt which the Company believes approximates a market interest rate.

Non-recourse funding obligations

The Company estimates the fair value of its non-recourse funding obligations using internal discounted cash flow models. The discount rates used in the model were based on a current market yield for similar financial instruments.

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended	12 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Changes in Accumulated Other Comprehensive Income (Loss) by Component
Other comprehensive income (loss) before reclassifications				$ (894,593)
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings		$ (4,566)		(4,566)
Amounts reclassified from accumulated other comprehensive income (loss)				1,387
Total other comprehensive income (loss)		(605,333)		(897,772)
Ending Balance		(897,772)		(897,772)
Unrealized gains and losses on available-for-sale securities
Changes in Accumulated Other Comprehensive Income (Loss) by Component
Other comprehensive income (loss) before reclassifications				(894,507)
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings				(4,566)
Amounts reclassified from accumulated other comprehensive income (loss)				1,301
Total other comprehensive income (loss)				(897,772)
Ending Balance		$ (897,772)		(897,772)
Offset of net unrealized losses in AOCI due to impact those net unrealized losses would have on certain of the Company's insurance assets and liabilities had the net unrealized losses been recognized in net income				493,000
Gains and losses on derivative instruments
Changes in Accumulated Other Comprehensive Income (Loss) by Component
Other comprehensive income (loss) before reclassifications				(86)
Amounts reclassified from accumulated other comprehensive income (loss)				86
Predecessor
Changes in Accumulated Other Comprehensive Income (Loss) by Component
Beginning Balance	$ 1,418,076			1,884,044	$ 494,066	$ 494,066
Other comprehensive income (loss) before reclassifications	469,852					959,561
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings	(243)		$ (1,061)		3,450	3,498
Amounts reclassified from accumulated other comprehensive income (loss)	(3,641)					(39,049)
Total other comprehensive income (loss)	465,968		$ 392,101		874,799	924,010
Ending Balance	1,884,044					1,418,076	$ 494,066
Predecessor | Unrealized gains and losses on available-for-sale securities
Changes in Accumulated Other Comprehensive Income (Loss) by Component
Beginning Balance	1,484,169			1,962,130	539,003	539,003
Other comprehensive income (loss) before reclassifications	482,370					986,958
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings	(243)					3,498
Amounts reclassified from accumulated other comprehensive income (loss)	(4,166)					(45,290)
Total other comprehensive income (loss)	477,961					945,166
Ending Balance	1,962,130					1,484,169	539,003
Offset of net unrealized losses in AOCI due to impact those net unrealized losses would have on certain of the Company's insurance assets and liabilities had the net unrealized losses been recognized in net income	(492,600)					(504,400)	(189,800)
Predecessor | Gains and losses on derivative instruments
Changes in Accumulated Other Comprehensive Income (Loss) by Component
Beginning Balance	(82)			(50)	(1,235)	(1,235)
Other comprehensive income (loss) before reclassifications	9					(2)
Amounts reclassified from accumulated other comprehensive income (loss)	23					1,155
Total other comprehensive income (loss)	32					1,153
Ending Balance	(50)					(82)	(1,235)
Predecessor | Minimum Pension Liability Adjustment
Changes in Accumulated Other Comprehensive Income (Loss) by Component
Beginning Balance	(66,011)			$ (78,036)	$ (43,702)	(43,702)
Other comprehensive income (loss) before reclassifications	(12,527)					(27,395)
Amounts reclassified from accumulated other comprehensive income (loss)	502					5,086
Total other comprehensive income (loss)	(12,025)					(22,309)
Ending Balance	$ (78,036)					$ (66,011)	$ (43,702)

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CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fixed maturities, amortized cost	$ 37,890,827
Fixed maturities at amortized cost, fair value	489,950
Equity securities, cost	734,053
Mortgage loans, related to securitizations	423,702
Investment real estate, accumulated depreciation	52
Other intangibles, accumulated amortization	17,212
Property and equipment, accumulated depreciation	$ 3,658
Common Stock, par value (in dollars per share)	$ 0.01
Common Stock, shares authorized (in shares)	5,000
Common Stock, shares issued (in shares)	1,000
Net unrealized gains (losses) on investments, income tax	$ (480,957)
Net unrealized (losses) gains relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, income tax	(2,458)
Accumulated loss - derivatives, income tax	0
Postretirement benefits liability adjustment, income tax	$ 0
Predecessor
Fixed maturities, amortized cost		$ 33,738,242
Fixed maturities at amortized cost, fair value		485,422
Equity securities, cost		778,744
Mortgage loans, related to securitizations		455,250
Investment real estate, accumulated depreciation		246
Property and equipment, accumulated depreciation		$ 118,487
Preferred Stock, par value (in dollars per share)		$ 1
Preferred Stock, shares authorized (in shares)		4,000,000
Preferred Stock, shares Issued (in shares)		0
Common Stock, par value (in dollars per share)		$ 0.50
Common Stock, shares authorized (in shares)		160,000,000
Common Stock, shares issued (in shares)		88,776,960
Treasury stock, shares (in shares)		9,435,255
Net unrealized gains (losses) on investments, income tax		$ 796,960
Net unrealized (losses) gains relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, income tax		2,208
Accumulated loss - derivatives, income tax		(45)
Postretirement benefits liability adjustment, income tax		$ (35,545)

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CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Benefits and settlement expenses, reinsurance ceded		$ 303,743		$ 420,951
Other operating expenses, reinsurance ceded		$ 49,741		$ 84,777
Predecessor
Benefits and settlement expenses, reinsurance ceded	$ 87,674		$ 328,555		$ 633,387
Other operating expenses, reinsurance ceded	$ 35,036		$ 46,545		$ 90,311

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GOODWILL

6 Months Ended

Jun. 30, 2015

GOODWILL

GOODWILL

8.GOODWILL

During the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company decreased its goodwill balance by approximately $0.3 million. The decrease for the period of the Predecessor Company was due to an adjustment in the Acquisitions segment related to tax benefits realized during the period on the portion of tax goodwill in excess of GAAP basis goodwill. The goodwill balances associated with the Predecessor Company were replaced with newly established goodwill balances in conjunction with the Dai-ichi Merger, in accordance with ASC Topic 850, as described below.

As permitted by ASC Topic 805, Business Combinations, the Company measured its assets and liabilities at fair value on the date of the merger, February 1, 2015. The purchase price in excess of the fair value of assets and liabilities of the Company resulted in the establishment of goodwill as of the date of the merger. As of February 1, 2015 (Successor Company), the Company established an aggregate goodwill balance of $735.7 million. Refer to Note 3, Dai-ichi Merger, for more information related to the Successor Company goodwill. There has been no change in the goodwill during the period of February 1, 2015 to June 30, 2015 (Successor Company).

Accounting for goodwill requires an estimate of the future profitability of the associated lines of business to assess the recoverability of the capitalized acquisition goodwill. The Company evaluates the carrying value of goodwill at the segment (or reporting unit) level at least annually and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to: 1) a significant adverse change in legal factors or in business climate, 2) unanticipated competition, or 3) an adverse action or assessment by a regulator. When evaluating whether goodwill is impaired, the Company first determines through qualitative analysis whether relevant events and circumstances indicate that it is more likely than not that segment goodwill balances are impaired as of the measurement date. If it is determined that it is more likely than not that impairment exists, the Company compares its estimate of the fair value of the reporting unit to which the goodwill is assigned to the reporting unit’s carrying amount, including goodwill. The Company utilizes a fair value measurement (which includes a discounted cash flows analysis) to assess the carrying value of the reporting units in consideration of the recoverability of the goodwill balance assigned to each reporting unit as of the measurement date. The Company’s material goodwill balances are attributable to certain of its operating segments (which are each considered to be reporting units). The cash flows used to determine the fair value of the Company’s reporting units are dependent on a number of significant assumptions. The Company’s estimates, which consider a market participant view of fair value, are subject to change given the inherent uncertainty in predicting future results and cash flows, which are impacted by such things as policyholder behavior, competitor pricing, capital limitations, new product introductions, and specific industry and market conditions. Additionally, the discount rate used is based on the Company’s judgment of the appropriate rate for each reporting unit based on the relative risk associated with the projected cash flows. As of June 30, 2015 (Successor Company) and for the period February 1, 2015 through June 30, 2015 (Successor Company), the Company did not identify any events or circumstances which would indicate that the fair value of its operating segments would have declined below their book value, either individually or in the aggregate. Accordingly, no impairment to the Company’s goodwill balance has been recorded.

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 23, 2015
Document and Entity Information
Entity Registrant Name	PROTECTIVE LIFE CORP
Entity Central Index Key	0000355429
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,000
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2

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DEBT AND OTHER OBLIGATIONS

6 Months Ended

Jun. 30, 2015

DEBT AND OTHER OBLIGATIONS

DEBT AND OTHER OBLIGATIONS

9.DEBT AND OTHER OBLIGATIONS

Debt and Subordinated Debt Securities

In conjunction with the Merger and in accordance with ASC Topic 805, the Company adjusted the carrying value of debt to fair value as of the date of the Merger, February 1, 2015. This resulted in the Company establishing premiums and discounts on its outstanding debt, subordinated debentures and non-recourse funding obligations. The carrying value of the Company’s revolving line of credit approximates fair value due the nature of the borrowings and the fact the Company pays a variable rate of interest that reflects current market conditions. The fair value of the Company’s senior notes, subordinated debt, non-recourse funding obligations associated with Golden Gate II Captive Insurance Company and MONY Life Insurance Company, were determined using market prices as of February 1, 2015. The fair value of the Golden Gate V non-recourse funding obligation was determined using a discounted cash flow model with inputs derived from comparable financial instruments. The premiums and discounts established as of February 1, 2015 are amortized over the expected life of the instruments using the effective interest method. The amortization of premiums and discounts are recorded as a component of interest expense and are recorded in “Other operating expenses” on the Company’s Consolidated Condensed Statements of Income.

Debt and subordinated debt securities are summarized as follows:

	Successor		Predecessor
	Company		Company
	As of		As of
	June 30, 2015		December 31, 2014
	(Dollars In Thousands)		(Dollars In Thousands)
Debt (year of issue):
Revolving Line of Credit	$	545,000	$	450,000
6.40% Senior Notes (2007), due 2018	165,625		150,000
7.375% Senior Notes (2009), due 2019	482,183		400,000
8.45% Senior Notes (2009), due 2039	469,931		300,000
	$	1,662,739	$	1,300,000
Subordinated debt securities (year of issue):
6.125% Subordinated Debentures (2004), due 2034, callable 2009	$	—	$	103,093
6.25% Subordinated Debentures (2012), due 2042, callable 2017	298,659		287,500
6.00% Subordinated Debentures (2012), due 2042, callable 2017	153,765		150,000
	$	452,424	$	540,593

During the period of February 1, 2015 to June 30, 2015 (Successor Company), the Company called and redeemed the entire $103.1 million of outstanding principal amount of the Company’s 6.125% Subordinated Debentures due 2034.

Under a revolving line of credit arrangement that was in effect until February 2, 2015 (the “Credit Facility”), the Company had the ability to borrow on an unsecured basis up to an aggregate principal amount of $750 million. The Company had the right in certain circumstances to request that the commitment under the Credit Facility be increased up to a maximum principal amount of $1.0 billion. Balances outstanding under the Credit Facility accrued interest at a rate equal to, at the option of the Borrowers, (i) LIBOR plus a spread based on the ratings of the Company’s senior unsecured long-term debt (“Senior Debt”), or (ii) the sum of (A) a rate equal to the highest of (x) the Administrative Agent’s prime rate, (y) 0.50% above the Federal Funds rate, or (z) the one-month LIBOR plus 1.00% and (B) a spread based on the ratings of our Senior Debt. The Credit Facility also provided for a facility fee at a rate, 0.175%, that could vary with the ratings of the Company’s Senior Debt and that was calculated on the aggregate amount of commitments under the Credit Facility, whether used or unused. The Credit Facility provided that the Company was liable for the full amount of any obligations for borrowings or letters of credit, including those of PLICO, under the Credit Facility. The maturity date of the Credit Facility was July 17, 2017. The Company was not aware of any non-compliance with the financial debt covenants of the Credit Facility as of December 31, 2014 (Predecessor Company). There was an outstanding balance of $450.0 million bearing interest at a rate of LIBOR plus 1.20% under the Credit Facility as of December 31, 2014 (Predecessor Company). As of December 31, 2014 (Predecessor Company), PLICO had used $55.0 million of borrowing capacity by executing a Letter of Credit under the Credit Facility for the benefit of an affiliated captive reinsurance subsidiary of the Company. This Letter of Credit had not been drawn upon as of December 31, 2014 (Predecessor Company).

On February 2, 2015, the Company amended and restated the Credit Facility (the “2015 Credit Facility”). Under the 2015 Credit Facility, the Company has the ability to borrow on an unsecured basis up to an aggregate principal amount of $1.0 billion. The Company has the right in certain circumstances to request that the commitment under the 2015 Credit Facility be increased up to a maximum principal amount of $1.25 billion. Balances outstanding under the 2015 Credit Facility accrue interest at a rate equal to, at the option of the Borrowers, (i) LIBOR plus a spread based on the ratings of the Company’s Senior Debt, or (ii) the sum of (A) a rate equal to the highest of (x) the Administrative Agent’s prime rate, (y) 0.50% above the Federal Funds rate, or (z) the one-month LIBOR plus 1.00% and (B) a spread based on the ratings of our Senior Debt. The 2015 Credit Facility also provided for a facility fee at a rate that varies with the ratings of the Company’s Senior Debt and that is calculated on the aggregate amount of commitments under the 2015 Credit Facility, whether used or unused. The initial facility fee rate was 0.15% on February 2, 2015, and was adjusted to 0.125% upon our subsequent ratings upgrade on February 2, 2015. The 2015 Credit Facility provides that the Company is liable for the full amount of any obligations for borrowings or letters of credit, including those of PLICO, under the 2015 Credit Facility. The maturity date of the 2015 Credit Facility is February 2, 2020. The Company is not aware of any non-compliance with the financial debt covenants of the Credit Facility as of February 2, 2015 or the 2015 Credit Facility as of June 30, 2015 (Successor Company). There was an outstanding balance of $545.0 million bearing interest at a rate of LIBOR plus 1.00% as June 30, 2015 (Successor Company). As of June 30, 2015 (Successor Company), the $55.0 million Letter of Credit executed by PLICO was no longer issued and outstanding.

Non-Recourse Funding Obligations

Golden Gate Captive Insurance Company

Golden Gate Captive Insurance Company (“Golden Gate”), a South Carolina special purpose financial captive insurance company and wholly owned subsidiary of PLICO, had three series of non-recourse funding obligations with a total outstanding balance of $800 million as of June 30, 2015 (Successor Company). The Company holds the entire outstanding balance of non-recourse funding obligation. The Series A1 non-recourse funding obligations have a balance of $400 million and accrue interest at 7.375%, the Series A2 non-recourse funding obligations have a balance of $100 million and accrue interest at 8.00%, and the Series A3 non-recourse funding obligations have a balance of $300 million and accrue interest at 8.45%.

Golden Gate II Captive Insurance Company

Golden Gate II Captive Insurance Company (“Golden Gate II”), a South Carolina special purpose financial captive insurance company wholly owned by PLICO, had $575 million of outstanding non-recourse funding obligations as of June 30, 2015 (Successor Company). These outstanding non-recourse funding obligations were issued to special purpose trusts, which in turn issued securities to third parties. Certain of our affiliates own a portion of these securities. As of June 30, 2015 (Successor Company), securities related to $144.9 million of the outstanding balance of the non-recourse funding obligations were held by external parties and securities related to $430.1 million of the non-recourse funding obligations were held by the Company and its affiliates. The Company has entered into certain support agreements with Golden Gate II obligating the Company to make capital contributions or provide support related to certain of Golden Gate II’s expenses and in certain circumstances, to collateralize certain of the Company’s obligations to Golden Gate II. These support agreements provide that amounts would become payable by the Company to Golden Gate II if its annual general corporate expenses were higher than modeled amounts or if Golden Gate II’s investment income on certain investments or premium income was below certain actuarially determined amounts. As of June 30, 2015 (Successor Company), no payments have been made under these agreements, however, certain support agreement obligations to Golden Gate II of approximately $1.9 million have been collateralized by the Company. Re-evaluation and, if necessary, adjustments of any support agreement collateralization amounts occur annually during the first quarter pursuant to the terms of the support agreements.

Golden Gate V Vermont Captive Insurance Company

On October 10, 2012, Golden Gate V, a Vermont special purpose financial insurance company, and Red Mountain, both wholly owned subsidiaries of PLICO, entered into a 20-year transaction to finance up to $945 million of “AXXX” reserves related to a block of universal life insurance policies with secondary guarantees issued by our direct wholly owned subsidiary PLICO and indirect wholly owned subsidiary, West Coast Life Insurance Company (“WCL”). Golden Gate V issued non-recourse funding obligations to Red Mountain, and Red Mountain issued a note with an initial principal amount of $275 million, increasing to a maximum of $945 million in 2027, to Golden Gate V for deposit to a reinsurance trust supporting Golden Gate V’s obligations under a reinsurance agreement with WCL, pursuant to which WCL cedes liabilities relating to the policies of WCL and retrocedes liabilities relating to the policies of PLICO. Through the structure, Hannover Life Reassurance Company of America (“Hannover Re”), the ultimate risk taker in the transaction, provides credit enhancement to the Red Mountain note for the 20-year term in exchange for a fee. The transaction is “non-recourse” to Golden Gate V, Red Mountain, WCL, PLICO and the Company, meaning that none of these companies are liable for the reimbursement of any credit enhancement payments required to be made. As of June 30, 2015 (Successor Company), the principal balance of the Red Mountain note was $470 million. Future scheduled capital contributions to prefund credit enhancement fees amount to approximately $139.6 million and will be paid in annual installments through 2031. In connection with the transaction, the Company has entered into certain support agreements under which it guarantees or otherwise supports certain obligations of Golden Gate V or Red Mountain. The support agreements provide that amounts would become payable by the Company if Golden Gate V’s annual general corporate expenses were higher than modeled amounts or in the event write-downs due to other-than-temporary impairments on assets held in certain accounts exceed defined threshold levels. Additionally, the Company has entered into separate agreements to indemnify Golden Gate V with respect to material adverse changes in non-guaranteed elements of insurance policies reinsured by Golden Gate V, and to guarantee payment of certain fee amounts in connection with the credit enhancement of the Red Mountain note. As of June 30, 2015 (Successor Company), no payments have been made under these agreements.

In connection with the transaction outlined above, Golden Gate V had a $470 million outstanding non-recourse funding obligation as of June 30, 2015 (Successor Company). This non-recourse funding obligation matures in 2037, has scheduled increases in principal to a maximum of $945 million, and accrues interest at a fixed annual rate of 6.25%.

Non-recourse funding obligations outstanding as of June 30, 2015 (Successor Company), on a consolidated basis, are shown in the following table:

				Year-to-Date
			Maturity	Weighted-Avg
Issuer	Balance		Year	Interest Rate
	(Dollars In Thousands)
Golden Gate II Captive Insurance Company	$	118,274	2052	1.32	%
Golden Gate V Vermont Captive Insurance Company(1)	535,474		2037	5.12	%
MONY Life Insurance Company(1)	2,551		2024	6.19	%
Total	$	656,299

(1) Fixed rate obligations

During the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company did not repurchase any of its outstanding non-recourse funding obligations. For the six months ended June 30, 2014 (Predecessor Company), the Company repurchased $18.3 million of its outstanding non-recourse funding obligations, at a discount. The repurchase resulted in a $4.6 million pre-tax gain for the Company.

Letters of Credit

Golden Gate III Vermont Captive Insurance Company (“Golden Gate III”), a Vermont special purpose financial insurance company and wholly owned subsidiary of PLICO, is party to a Reimbursement Agreement (the “Reimbursement Agreement”) with UBS AG, Stamford Branch (“UBS”), as issuing lender. Under the original Reimbursement Agreement, dated April 23, 2010, UBS issued a letter of credit (the “LOC”) in the initial amount of $505 million to a trust for the benefit of WCL. The Reimbursement Agreement was subsequently amended and restated effective November 21, 2011 (the “First Amended and Restated Reimbursement Agreement”), to replace the existing LOC with one or more letters of credit from UBS, and to extend the maturity date from April 1, 2018, to April 1, 2022. On August 7, 2013, Golden Gate III entered into a Second Amended and Restated Reimbursement Agreement with UBS (the “Second Amended and Restated Reimbursement Agreement”), which amended and restated the First Amended and Restated Reimbursement Agreement. Under the Second and Amended and Restated Reimbursement Agreement a new LOC in an initial amount of $710 million was issued by UBS in replacement of the existing LOC issued under the First Amended and Restated Reimbursement Agreement. The term of the LOC was extended from April 1, 2022 to October 1, 2023, subject to certain conditions being satisfied including scheduled capital contributions being made to Golden Gate III by one of its affiliates. The maximum stated amount of the LOC was increased from $610 million to $720 million in 2015 if certain conditions had been met. On June 25, 2014, Golden Gate III entered into a Third Amended and Restated Reimbursement Agreement with UBS (the “Third Amended and Restated Reimbursement Agreement”), which amended and restated the Second Amended and Restated Reimbursement Agreement. Under the Third Amended and Restated Reimbursement Agreement, a new LOC in an initial amount of $915 million was issued by UBS in replacement of the existing LOC issued under the Second Amended and Restated Reimbursement Agreement. The term of the LOC was extended from October 1, 2023 to April 1, 2025, subject to certain conditions being satisfied including scheduled capital contributions being made to Golden Gate III by one of its affiliates. The maximum stated amount of the LOC was increased from $720 million to $935 million in 2015 if certain conditions are met. The LOC is held in trust for the benefit of WCL, and supports certain obligations of Golden Gate III to WCL under an indemnity reinsurance agreement originally effective April 1, 2010, as amended and restated on November 21, 2011, and as further amended and restated on August 7, 2013 and on June 25, 2014 to include additional blocks of policies, and pursuant to which WCL cedes liabilities relating to the policies of WCL and retrocedes liabilities relating to the policies of PLICO. The LOC balance was $935 million as of June 30, 2015 (Successor Company). The term of the LOC is expected to be approximately 15 years from the original issuance date. This transaction is “non- recourse” to WCL, PLICO, and the Company, meaning that none of these companies other than Golden Gate III are liable for reimbursement on a draw of the LOC. The Company has entered into certain support agreements with Golden Gate III obligating the Company to make capital contributions or provide support related to certain of Golden Gate III’s expenses and in certain circumstances, to collateralize certain of the Company’s obligations to Golden Gate III. Future scheduled capital contributions amount to approximately $122.5 million and will be paid in three installments with the last payment occurring in 2021, and these contributions may be subject to potential offset against dividend payments as permitted under the terms of the Third Amended and Restated Reimbursement Agreement. The support agreements provide that amounts would become payable by the Company to Golden Gate III if its annual general corporate expenses were higher than modeled amounts or if specified catastrophic losses occur during defined time periods with respect to the policies reinsured by Golden Gate III. Pursuant to the terms of an amended and restated letter agreement with UBS, the Company has continued to guarantee the payment of fees to UBS as specified in the Third Amended and Restated Reimbursement Agreement. As of June 30, 2015 (Successor Company), no payments have been made under these agreements.

Golden Gate IV Vermont Captive Insurance Company (“Golden Gate IV”), a Vermont special purpose financial insurance company and wholly owned subsidiary of PLICO, is party to a Reimbursement Agreement with UBS AG, Stamford Branch, as issuing lender. Under the Reimbursement Agreement, dated December 10, 2010, UBS issued an LOC in the initial amount of $270 million to a trust for the benefit of WCL. The LOC balance has increased, in accordance with the terms of the Reimbursement Agreement, during each quarter of 2015 and was $770 million as of June 30, 2015 (Successor Company). Subject to certain conditions, the amount of the LOC will be periodically increased up to a maximum of $790 million in 2016. The term of the LOC is expected to be 12 years from the original issuance date (stated maturity of December 30, 2022). The LOC was issued to support certain obligations of Golden Gate IV to WCL under an indemnity reinsurance agreement, pursuant to which WCL cedes liabilities relating to the policies of WCL and retrocedes liabilities relating to the policies of PLICO. This transaction is “non-recourse” to WCL, PLICO, and the Company, meaning that none of these companies other than Golden Gate IV are liable for reimbursement on a draw of the LOC. The Company has entered into certain support agreements with Golden Gate IV obligating the Company to make capital contributions or provide support related to certain of Golden Gate IV’s expenses and in certain circumstances, to collateralize certain of the Company’s obligations to Golden Gate IV. The support agreements provide that amounts would become payable by the Company to Golden Gate IV if its annual general corporate expenses were higher than modeled amounts or if specified catastrophic losses occur during defined time periods with respect to the policies reinsured by Golden Gate IV. The Company has also entered into a separate agreement to guarantee the payments of LOC fees under the terms of the Reimbursement Agreement. As of June 30, 2015 (Successor Company), no payments have been made under these agreements.

Repurchase Program Borrowings

While the Company anticipates that the cash flows of its operating subsidiaries will be sufficient to meet its investment commitments and operating cash needs in a normal credit market environment, the Company recognizes that investment commitments scheduled to be funded may, from time to time, exceed the funds then available. Therefore, the Company has established repurchase agreement programs for certain of its insurance subsidiaries to provide liquidity when needed. The Company expects that the rate received on its investments will equal or exceed its borrowing rate. Under this program, the Company may, from time to time, sell an investment security at a specific price and agree to repurchase that security at another specified price at a later date. These borrowings are typically for a term less than 90 days. The market value of securities to be repurchased is monitored and collateral levels are adjusted where appropriate to protect the counterparty against credit exposure. Cash received is invested in fixed maturity securities, and the agreements provided for net settlement in the event of default or on termination of the agreements. As of June 30, 2015 (Successor Company), the fair value of securities pledged under the repurchase program was $657.4 million and the repurchase obligation of $602.2 million was included in the Company’s consolidated condensed balance sheets (at an average borrowing rate of 21 basis points). During the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the maximum balance outstanding at any one point in time related to these programs was $646.7 million and $175.0 million, respectively. The average daily balance was $507.2 million and $77.4 million (at an average borrowing rate of 17 and 16 basis points, respectively) during the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), respectively. As of December 31, 2014 (Predecessor Company), the Company had a $50.0 million outstanding balance related to such borrowings. During 2014, the maximum balance outstanding at any one point in time related to these programs was $633.7 million. The average daily balance was $470.4 million (at an average borrowing rate of 11 basis points) during the year ended December 31, 2014 (Predecessor Company).

The following table provides the amount of collateral pledged for repurchase agreements, grouped by asset class, as of June 30, 2015 (Successor Company):

Repurchase Agreements, Securities Lending Transactions, and Repurchase-to-Maturity Transactions

Accounted for as Secured Borrowings

	Remaining Contractual Maturity of the Agreements
	As of June 30, 2015 (Successor Company)
	(Dollars In Thousands)
	Overnight and						Greater Than
	Continuous		Up to 30 days		30-90 days		90 days		Total
Repurchase agreements and repurchase-to-maturity transactions
U.S. Treasury and agency securities	$	98,345	$	—	$	—	$	—	$	98,345
State and municipal securities	—		—		—		—		—
Other asset-backed securities	—		—		—		—		—
Corporate securities	—		107,781		—		—		107,781
Equity securities	—		—		—		—		—
Non-U.S. sovereign debt	—		—		—		—		—
Mortgage loans	451,246		—		—		—		451,246
Other asset-backed securities	—		—		—		—		—
Total borrowings	$	549,591	$	107,781	$	—	$	—	$	657,372

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OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Assets	$ 225,011
Net Amounts of Assets Presented in the Statement of Financial Position	225,011
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments	53,905
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received	77,148
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount	93,958
Total derivatives, not subject to a master netting arrangement or similar arrangement
Total derivatives, not subject to a master netting arrangement or similar arrangement	169,936
Total derivatives
Gross Amounts of Recognized Assets	394,947
Net Amounts of Assets Presented in the Statement of Financial Position	394,947
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments	53,905
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received	77,148
Total derivatives, Net Amount	263,894
Free-Standing derivatives
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Assets	225,011
Net Amounts of Assets Presented in the Statement of Financial Position	225,011
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments	53,905
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received	77,148
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount	93,958
Embedded derivative - Modco reinsurance treaties
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Assets	2,321
Net Amounts of Assets Presented in the Statement of Financial Position	2,321
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount	2,321
Embedded derivative - GMWB
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Assets	167,275
Net Amounts of Assets Presented in the Statement of Financial Position	167,275
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount	167,275
Other
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Assets	340
Net Amounts of Assets Presented in the Statement of Financial Position	340
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount	$ 340
Predecessor
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Assets		$ 225,716
Net Amounts of Assets Presented in the Statement of Financial Position		225,716
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments		53,612
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received		73,935
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount		98,169
Total derivatives, not subject to a master netting arrangement or similar arrangement
Total derivatives, not subject to a master netting arrangement or similar arrangement		68,254
Total derivatives
Gross Amounts of Recognized Assets		293,970
Net Amounts of Assets Presented in the Statement of Financial Position		293,970
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments		53,612
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received		73,935
Total derivatives, Net Amount		166,423
Predecessor | Free-Standing derivatives
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Assets		225,716
Net Amounts of Assets Presented in the Statement of Financial Position		225,716
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments		53,612
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received		73,935
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount		98,169
Predecessor | Embedded derivative - Modco reinsurance treaties
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Assets		1,051
Net Amounts of Assets Presented in the Statement of Financial Position		1,051
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount		1,051
Predecessor | Embedded derivative - GMWB
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Assets		66,843
Net Amounts of Assets Presented in the Statement of Financial Position		66,843
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount		66,843
Predecessor | Other
Total derivatives, subject to a master netting arrangement or similar arrangement
Gross Amounts of Recognized Assets		360
Net Amounts of Assets Presented in the Statement of Financial Position		360
Total derivatives, subject to a master netting arrangement or similar arrangement, Net Amount		$ 360

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CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net income		$ 63,840		$ 126,701
Other comprehensive income (loss):
Change in net unrealized gains (losses) on investments, net of income tax: (2015 Successor - $(324,302) and $(481,657)); (2015 Predecessor - $259,738; 2014 Predecessor - three months: $216,476; six months: $476,065)		(602,274)		(894,507)
Reclassification adjustment for investment amounts included in net income, net of income tax: (2015 Successor - $831 and $700); (2015 Predecessor - $(2,244); 2014 Predecessor - three months: $(6,558); six months: $(8,581))		1,543		1,301
Change in net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, net of income tax: (2015 Successor - $(2,458) and $(2,458)); (2015 Predecessor - $(131); 2014 Predecessor - three months: $(571); six months: $1,858)		(4,566)		(4,566)
Change in accumulated (loss) gain - derivatives, net of income tax: (2015 Successor - $12 and $0); (2015 Predecessor - $5; 2014 Predecessor - three months: $(325); six months: $(9))		23
Reclassification adjustment for derivative amounts included in net income, net of income tax: (2015 Successor - $(31) and $0); (2015 Predecessor - $13; 2014 Predecessor - three months: $214; six months: $449)		(59)
Total other comprehensive income (loss)		(605,333)		(897,772)
Total comprehensive income (loss)		$ (541,493)		$ (771,071)
Predecessor
Net income	$ 1,509		$ 107,977		$ 191,616
Other comprehensive income (loss):
Change in net unrealized gains (losses) on investments, net of income tax: (2015 Successor - $(324,302) and $(481,657)); (2015 Predecessor - $259,738; 2014 Predecessor - three months: $216,476; six months: $476,065)	482,370		402,027		884,120
Reclassification adjustment for investment amounts included in net income, net of income tax: (2015 Successor - $831 and $700); (2015 Predecessor - $(2,244); 2014 Predecessor - three months: $(6,558); six months: $(8,581))	(4,166)		(12,180)		(15,936)
Change in net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, net of income tax: (2015 Successor - $(2,458) and $(2,458)); (2015 Predecessor - $(131); 2014 Predecessor - three months: $(571); six months: $1,858)	(243)		(1,061)		3,450
Change in accumulated (loss) gain - derivatives, net of income tax: (2015 Successor - $12 and $0); (2015 Predecessor - $5; 2014 Predecessor - three months: $(325); six months: $(9))	9		(604)		(17)
Reclassification adjustment for derivative amounts included in net income, net of income tax: (2015 Successor - $(31) and $0); (2015 Predecessor - $13; 2014 Predecessor - three months: $214; six months: $449)	23		399		835
Change in postretirement benefits liability adjustment, net of income tax: (2015 Successor - $0 and $0); (2015 Predecessor - $(6,475); 2014 Predecessor - three months: $1,896; six months: $1,264)	(12,025)		3,520		2,347
Total other comprehensive income (loss)	465,968		392,101		874,799
Total comprehensive income (loss)	$ 467,477		$ 500,078		$ 1,066,415

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DAI-ICHI MERGER

6 Months Ended

Jun. 30, 2015

DAI-ICHI MERGER

DAI-ICHI MERGER

3.DAI-ICHI MERGER

On February 1, 2015 the Company, subsequent to required approvals from the Company’s shareholders and relevant regulatory authorities, became a wholly owned subsidiary of Dai-ichi Life as contemplated by the Agreement and Plan of Merger (the “Merger Agreement”) with Dai-ichi Life and DL Investment (Delaware), Inc., a Delaware corporation and wholly owned subsidiary of Dai-ichi Life, which provided for the Merger of DL Investment (Delaware), Inc. with and into the Company, with the Company surviving the Merger as a wholly owned subsidiary of Dai-ichi Life. On February 1, 2015 each share of the Company’s common stock outstanding was converted into the right to receive $70 per share, without interest (the “Per Share Merger Consideration”). The aggregate cash consideration paid in connection with the Merger for the outstanding shares of common stock was approximately $5.6 billion and paid directly to the shareowners of record by Dai-ichi Life. According to public statements by both companies, the Merger will provide Dai-ichi Life with a platform for growth in the United States, where it did not previously have a significant presence. In connection with the completion of the Merger, the Company’s previously publicly traded equity was delisted from the NYSE, although the Company remains an SEC registrant for financial reporting purposes in the United States.

The Merger was accounted for under the acquisition method of accounting under ASC Topic 805. In accordance with ASC Topic 805-20-30, all identifiable assets acquired and liabilities assumed were measured at fair value as of the acquisition date. Goodwill of $735.7 million represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in the Merger, and reflects the Company’s assembled workforce, future growth potential and other sources of value not associated with identifiable assets. None of the goodwill is tax deductible.

The following table summarizes the consideration paid for the acquisition and the preliminary determination of the fair value of assets acquired and liabilities assumed at the acquisition date:

	Fair Value
	As of
	February 1, 2015
	(Dollars In Thousands)
Assets
Fixed maturities	$	38,363,025
Equity securities	745,512
Mortgage loans	5,580,229
Investment real estate	7,456
Policy loans	1,751,872
Other long-term investments	686,507
Short-term investments	316,167
Total investments	47,450,768
Cash	462,710
Accrued investment income	484,021
Accounts and premiums receivable	112,182
Reinsurance receivables	5,724,020
Value of business acquired	1,276,886
Goodwill	735,712
Other intangibles	683,000
Property and equipment	104,364
Other assets	120,762
Income tax receivable	15,458
Assets related to separate accounts
Variable annuity	12,970,587
Variable universal life	819,188
Total assets	$	70,959,658
Liabilities
Future policy and benefit claims	$	30,195,841
Unearned premiums	682,183
Total policy liabilities and accruals	30,878,024
Stable value product account balances	1,932,277
Annuity account balances	10,941,661
Other policyholders’ funds	1,388,083
Other liabilities	2,188,863
Deferred income taxes	1,535,556
Non-recourse funding obligations	621,798
Repurchase program borrowings	50,000
Debt	1,519,211
Subordinated debt securities	560,351
Liabilities related to separate accounts
Variable annuity	12,970,587
Variable universal life	819,188
Total liabilities	65,405,599
Net assets acquired	$	5,554,059

As of the acquisition date, all contractual cash flows related to the Company’s historical and acquired receivables (as presented within this consolidated balance sheet) are expected to be collected.

Intangible assets recognized by the Company included the following (excluding goodwill):

	Estimated
	Fair Value on		Estimated
	Acquisition Date		Useful Life
	(Dollars In Thousands)		(In Years)
Distribution relationships	$	405,000	14-22
Trade names	103,000		13-17
Technology	143,000		7-14
Total intangible assets subject to amortization	651,000
Insurance licenses	32,000		Indefinite
Total intangible assets	$	683,000

Identified intangible assets were valued using the excess earnings method, relief from royalty method or cost approach, as appropriate.

Amortizable intangible assets will be amortized straight line over their assigned useful lives. The following is a schedule of estimated aggregate amortization expense:

Year	Amount
	(Dollars In Thousands)
2015	$	20,657
2016	41,313
2017	41,313
2018	41,313
2019	41,313

All tangible and intangible assets of the Company were allocated to applicable operating segments in connection with the recording of pushdown accounting.  The purchase price was also allocated to each operating segment in accordance with the determined fair value of the operating segments, such that the total reconciled with the total consideration paid in the merger.  Subtraction of the fair value of the tangible and intangible assets for each operating segment from the allocated purchase price of that operating segment resulted in the goodwill allocated to each operating segment. The amount of goodwill allocated to each operating segment is reflected in Note 18, Operating Segments.

Treatment of certain acquisition related costs

The Company recorded costs related to the Merger in either the predecessor or successor periods based on the specific facts and circumstances underlying each individual transaction. Certain of these costs were fully contingent on the consummation of the Merger on February 1, 2015 (Successor Company). These costs are not expensed in either the Predecessor or Successor Company Statement of Comprehensive Income (Loss). Liabilities for payment of these contingent costs are included in the opening balance sheet as of February 1, 2015 (Successor Company), and the nature and amount of the costs are discussed below.

Fees in the amount of $28.8 million which were paid to the Company’s financial advisor related to the Merger were recorded as liabilities as of the acquisition date. In accordance with the terms of the contract, payment of these fees was contingent on the successful closing of the Merger, and became payable on the date thereof.

Certain of the Company’s stock-based compensation arrangements provided for acceleration of benefits on the completion of a change-in-control event. Upon the completion of the Merger, benefits in the amount of $138.2 million became payable to eligible employees under these arrangements. Such accounts are recorded as liabilities as of the acquisition closing date. The portion of this payable that represented expense accelerated on the merger date was $25.4 million.

Treatment of Benefit Plans

At or immediately prior to the Merger, each stock appreciation right with respect to shares of Common Stock granted under any Stock Plan (each, a “SAR”) that were outstanding and unexercised immediately prior to the Merger and that had a base price per share of Common Stock underlying such SAR (the “Base Price”) that was less than the Per Share Merger Consideration (each such SAR, an “In-the-Money SAR”), whether or not exercisable or vested, was cancelled and converted into the right to receive an amount in cash less any applicable withholding taxes, determined by multiplying (i) the excess of the Per Share Merger Consideration over the Base Price of such In-the-Money SAR by (ii) the number of shares of Common Stock subject to such In-the-Money SAR (such amount, the “SAR Consideration”).

At or immediately prior to the effective time of the Merger, each restricted stock unit with respect to a share of Common Stock granted under any Stock Plan (each, a “RSU”) that was outstanding immediately prior to the Merger, whether or not vested, was cancelled and converted into the right to receive an amount in cash, without interest, less any applicable withholding taxes, determined by multiplying (i) the Per Share Merger Consideration by (ii) the number of RSUs.

The number of performance shares earned for each award of performance shares granted under any Stock Plan was calculated by determining the number of performance shares that would have been paid if the subject award period had ended on the December 31 immediately preceding the Merger (based on the conditions set for payment of performance share awards for the subject award period), provided that the number of performance shares earned for each award were not less than the aggregate number of performance shares at the target performance level. Each performance share earned that was outstanding immediately prior to the Merger, whether or not vested, was cancelled and converted into the right to receive an amount in cash, without interest, less any applicable withholding taxes, determined by multiplying (i) the Per Share Merger Consideration by (ii) the number of Performance Shares.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2015

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Significant Accounting Policies

For a full description of significant accounting policies, see Note 2 to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (Predecessor Company). Other than the accounting matters resulting from the application of pushdown accounting in connection with ASC Topic 805, the Company did not make significant changes to accounting policies during the period of February 1, 2015 to June 30, 2015 (Successor Company) except as noted below.

Intangible Assets

Intangible assets with definite lives are amortized over the estimated useful life of the asset. Amortizable intangible assets primarily consist of distribution relationships, trade names, and technology. Intangible assets with indefinite lives, primarily insurance licenses, are not amortized.

Value of Business Acquired

In conjunction with the Merger, a portion of the purchase price was allocated to the right to receive future gross profits from cash flows and earnings of the Company’s insurance policies and investment contracts as of the date of the Merger. This intangible asset, called value of business acquired (“VOBA”), is based on the actuarially estimated present value of future cash flows from the Company’s insurance policies and investment contracts in-force on the date of the Merger. The estimated present value of future cash flows used in the calculation of the VOBA is based on certain assumptions, including mortality, persistency, expenses, and interest rates that the Company expects to experience in future years. The Company amortizes VOBA in proportion to gross premiums for traditional life products, or estimated gross margins (“EGMs”) for participating traditional life products within the MONY block. For interest sensitive products, the Company uses various amortization bases including expected gross profits (“EGPs”), revenues, or insurance in-force.

Goodwill

Goodwill of $735.7 million was recognized in conjunction with the Merger as the excess of the purchase considerations over the fair value of identifiable assets acquired and liabilities assumed. The balance recognized as goodwill is not amortized, but is reviewed for impairment on an annual basis, or more frequently as events or circumstances may warrant, including those circumstances which would more likely than not reduce the fair value of the Company’s reporting units below its carrying amount.

Property and Equipment

In conjunction with the Merger, property and equipment was recorded at fair value and will be depreciated from this basis in future periods based on the respective estimated useful lives. Real estate assets were recorded at appraised values as of the acquisition date. The Company has estimated the remaining useful life of the home office building to be 25 years. Land is not depreciated.

The carrying amounts of the Company’s fixed assets are as follows

	Successor		Predecessor
	Company		Company
	As of		As of
	June 30, 2015		December 31, 2014
	(Dollars In Thousands)		(Dollars In Thousands)
Home office building	$	65,127	$	75,109
Land	24,920		—
Data processing equipment	11,815		40,919
Other, principally furniture and equipment	4,894		55,312
	106,756		171,340
Accumulated depreciation	3,658		118,487
Total property and equipment	$	103,098	$	52,853

Guaranteed Minimum Withdrawal Benefits

The Company also establishes reserves for guaranteed minimum withdrawal benefits (“GMWB”) on its variable annuity (“VA”) products. The GMWB is valued in accordance with FASB guidance under the ASC Derivatives and Hedging Topic which utilizes the valuation technique prescribed by the ASC Fair Value Measurements and Disclosures Topic, which requires the embedded derivative to be recorded at fair value using current implied volatilities for the equity indices. The fair value of the GMWB is impacted by equity market conditions and can result in the GMWB embedded derivative being in an overall net asset or net liability position.  In times of favorable equity market conditions the likelihood and severity of claims is reduced and expected fee income increases.  Since claims are generally expected later than fees these favorable equity market conditions can result in the present value of fees being greater than the present value of claims which results in a net GMWB embedded derivative asset.  In times of unfavorable equity market conditions the likelihood and severity of claims is increased and expected fee income decreases and can result in the present value of claims exceeding the present value of fees resulting in a net GMWB embedded derivative liability. The methods used to estimate the embedded derivatives employ assumptions about mortality, lapses, policyholder behavior, equity market returns, interest rates, and market volatility. The Company assumes age-based mortality from the National Association of Insurance Commissioners 1994 Variable Annuity MGDB Mortality Table for company experience. Differences between the actual experience and the assumptions used result in variances in profit and could result in losses. In conjunction with the merger the Company updated the fair value of the GMWB reserves to reflect current assumptions as of February 1, 2015 (Successor Company). As a result of the application of ASC Topic 805, the Company reset the hedge premium rates utilized in the valuation for all policies to be equal to the present value of future claims with the reset hedge premium rates being capped at the actual charges to the policyholder. This update resulted in a decrease in the net liability of approximately $266.1 million on the Merger date. As of June 30, 2015 (Successor Company), the net GMWB asset held was approximately $59.9 million.

Policyholder Liabilities

Insurance Liabilities and Reserves

In conjunction with the Merger and in accordance with ASC 805, insurance liabilities and reserves are recorded at fair value and the underlying contracts are considered to be new contracts, for measurement and reporting purposes as of the acquisition date. Estimating liabilities for future policy benefits on life and health insurance products requires the use of assumptions relative to future investment yields, mortality, morbidity, persistency, and other assumptions based on the Company’s historical experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviation. Determining liabilities for the Company’s property and casualty insurance products also requires the use of assumptions, including the projected levels of used vehicle prices, the frequency and severity of claims, and the effectiveness of internal processes designed to reduce the level of claims. The Company’s results depend significantly upon the extent to which its actual claims experience is consistent with the assumptions the Company used in determining its reserves and pricing its products. The Company’s reserve assumptions and estimates require significant judgment and, therefore, are inherently uncertain. The Company cannot determine with precision the ultimate amounts that it will pay for actual claims or the timing of those payments. As such, at the acquisition date, the Company updated the assumptions described above to reflect current best estimates and reserves were calculated in accordance with the methodology described below. VOBA was recorded to reflect the difference between the fair value of the contractual insurance liability and the reserve established.

Traditional Life, Health, and Credit Insurance Products

Traditional life insurance products consist principally of those products with fixed and guaranteed premiums and benefits, and they include whole life insurance policies, term and term-like life insurance policies, limited payment life insurance policies, and certain annuities with life contingencies. In accordance with ASC 805, the liabilities for future policy benefits on traditional life insurance products, when combined with the associated VOBA, have been recorded at fair value. These values were computed using assumptions that includes interest rates, mortality, lapse rates, expenses estimates, and other assumptions based on the Company’s experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviation. The liability for future policy benefits and claims on traditional life, health, and credit insurance products includes estimated unpaid claims that have been reported to us and claims incurred but not yet reported.

Universal Life and Investment Products

Universal life and investment products include universal life insurance, guaranteed investment contracts, guaranteed funding agreements, deferred annuities, and annuities without life contingencies. Benefit reserves for universal life and investment products represent policy account balances before applicable surrender charges plus certain deferred policy initiation fees that are recognized in income over the term of the policies. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policy account balances and interest credited to policy account balances.

The Company establishes liabilities for fixed indexed annuity (“FIA”) products. These products are deferred fixed annuities with a guaranteed minimum interest rate plus a contingent return based on equity market performance. The FIA product is considered a hybrid financial instrument under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”) Topic 815—Derivatives and Hedging which allows the Company to make the election to value the liabilities of these FIA products at fair value. This election was made for the FIA products issued prior to 2010 as the policies were issued. These products are no longer being marketed. The future changes in the fair value of the liability for these FIA products will be recorded in Benefit and settlement expenses with the liability being recorded in Annuity account balances. For more information regarding the determination of fair value of annuity account balances please refer to Note 15, Fair Value of Financial Instruments.  Premiums and policy fees for these FIA products consist of fees that have been assessed against the policy account balances for surrenders. Such fees are recognized when assessed and earned.

The Company currently markets a deferred fixed annuity with a guaranteed minimum interest rate plus a contingent return based on equity market performance and the products are considered hybrid financial instruments under the FASB’s ASC Topic 815—Derivatives and Hedging. The Company did not elect to value these FIA products at fair value prior to the Merger date.  As a result the Company accounts for the provision that provides for a contingent return based on equity market performance as an embedded derivative. The embedded derivative is bifurcated from the host contract and recorded at fair value in Other liabilities. The host contract is accounted for as a debt instrument in accordance with ASC Topic 944—Financial Services—Insurance and is recorded in Annuity account balances with any discount to the minimum account value being accreted using the effective yield method. Benefits and settlement expenses include accreted interest and benefit claims incurred during the period.

The Company markets universal life products with a guaranteed minimum interest rate plus a contingent return based on equity market performance and are considered hybrid financial instruments under the FASB’s ASC Topic 815—Derivatives and Hedging. The Company did not elect to value these IUL products at fair value prior to the Merger date. As a result the Company accounts for the provision that provides for a contingent return based on equity market performance as an embedded derivative. The embedded derivative is bifurcated from the host contract and recorded at fair value in Other liabilities. Changes in the fair value of the embedded derivative are recorded in Realized investment gains (losses)—Derivative financial instruments. For more information regarding the determination of fair value of the IUL embedded derivative refer to Note 15, Fair Value of Financial Instruments. The host contract is accounted for as a debt instrument in accordance with ASC Topic 944—Financial Services—Insurance and is recorded in Future policy benefits and claims with any discount to the minimum account value being accreted using the effective yield method. Benefits and settlement expenses include accreted interest and benefit claims incurred during the period.

The Company’s accounting policies with respect to variable universal life (“VUL”) and VA are identical except that policy account balances (excluding account balances that earn a fixed rate) are valued at fair value and reported as components of assets and liabilities related to separate accounts.

The Company establishes liabilities for guaranteed minimum death benefits (“GMDB”) on its VA products. The methods used to estimate the liabilities employ assumptions about mortality and the performance of equity markets. The Company assumes age-based mortality from the National Association of Insurance Commissioners 1994 Variable Annuity MGDB Mortality Table for company experience. Future declines in the equity market would increase the Company’s GMDB liability. Differences between the actual experience and the assumptions used result in variances in profit and could result in losses. Our GMDB as of June 30, 2015 (Successor Company), are subject to a dollar-for-dollar reduction upon withdrawal of related annuity deposits on contracts issued prior to January 1, 2003. As of June 30, 2015 (Successor Company), the GMDB reserve was $32.8 million.

Property and Casualty Insurance Products

Property and casualty insurance products include service contract business, surety bonds, and guaranteed asset protection (“GAP”). Unearned premium reserves are maintained for the portion of the premiums that is related to the unexpired period of the policy. Benefit reserves are recorded when insured events occur. Benefit reserves include case basis reserves for known but unpaid claims as of the balance sheet date as well as incurred but not reported (“IBNR”) reserves for claims where the insured event has occurred but has not been reported to the Company as of the balance sheet date. The case basis reserves and IBNR are calculated based on historical experience and on assumptions relating to claim severity and frequency, the level of used vehicle prices, and other factors. These assumptions are modified as necessary to reflect anticipated trends.

Reinsurance

The Company uses reinsurance extensively in certain of its segments and accounts for reinsurance and the recognition of the impact of reinsurance costs in accordance with the ASC Financial Services — Insurance Topic. The following summarizes some of the key aspects of the Company’s accounting policies for reinsurance.

Reinsurance Assets and Liabilities—Claim liabilities and policy benefits are calculated consistently for all policies, regardless of whether or not the policy is reinsured. Once the claim liabilities and policy benefits for the underlying policies are estimated, the amounts recoverable from the reinsurers are estimated based on a number of factors including the terms of the reinsurance contracts, historical payment patterns of reinsurance partners, and the financial strength and credit worthiness of reinsurance partners and recorded as Reinsurance receivables on the balance sheet. The reinsurance receivables were recorded in the balance sheet using current accounting policies and the most current assumptions as of the merger date. As of the merger date, the Company also calculated the ceded VOBA associated with the reinsured policies. The reinsurance receivables combined with the associated ceded VOBA represent the fair value of the reinsurance assets. Liabilities for unpaid reinsurance claims are produced from claims and reinsurance system records, which contain the relevant terms of the individual reinsurance contracts. The Company monitors claims due from reinsurers to ensure that balances are settled on a timely basis. Incurred but not reported claims are reviewed by the Company’s actuarial staff to ensure that appropriate amounts are ceded.

The Company analyzes and monitors the credit worthiness of each of its reinsurance partners to minimize collection issues. For newly executed reinsurance contracts with reinsurance companies that do not meet predetermined standards, the Company requires collateral such as assets held in trusts or letters of credit.

Accounting Pronouncements Recently Adopted

Accounting Standards Update (“ASU”) No. 2014-08—Reporting Discontinued Operations and Disclosure of Disposals of Components of an Entity. This Update changes the requirements for reporting discontinued operations and related disclosures. The Update limits the definition of a discontinued operation to disposals that represent “strategic shifts” that will have a major effect on an entity’s operation and financial results. Additionally, the Update requires enhanced disclosures about the components of discontinued operations and the financial effects of the disposal. The amendments in this Update are effective for annual and interim periods beginning after December 15, 2014. The Company has reviewed the additional disclosures required by the Update, and will apply the revised guidance to any disposals occurring after the effective date.

ASU No. 2014-11—Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.  This Update changes the requirements for classification of certain repurchase agreements, and will expand the use of secured borrowing accounting for repurchase-to-maturity transactions. In addition, the Update requires additional disclosures for repurchase agreements accounted for both as sales and as secured borrowings. The amendments in this Update are effective for annual and interim periods beginning after December 15, 2014. The Update did not impact the Company’s financial position or results of operations. The Company has updated its policies and processes to ensure compliance with the additional disclosure requirements in this Update.

ASU No. 2014-17—Business Combinations (Topic 805).  This Update relates to “pushdown accounting”, which refers to pushing down the acquirer’s accounting and reporting basis (which is recognized in conjunction with its accounting for a business combination) to the acquiree’s standalone financial statements. The new guidance makes pushdown accounting optional for an acquiree that is a business or nonprofit activity when there is a change-in- control event (e.g., the acquirer in a business combination obtains control over the acquiree). In addition, the staff of the SEC released Staff Accounting Bulletin (“SAB”) No. 115, which rescinds SAB Topic 5J, “New Basis of Accounting Required in Certain Circumstances” (the SEC staff’s pre-existing guidance on pushdown accounting) and conforms SEC guidance on pushdown accounting to the FASB’s new guidance. Revised SEC guidance was codified in ASU No. 2015-08, issued in May 2015. The new pushdown accounting guidance became effective upon its issuance on November 18, 2014. Although now optional, the Company has applied pushdown accounting to its standalone financial statements effective with the Company becoming a wholly owned subsidiary of Dai-ichi Life on February 1, 2015. The presentation within this report for predecessor and successor periods is consistent with this Update.

Accounting Pronouncements Not Yet Adopted

ASU No. 2014-09—Revenue from Contracts with Customers (Topic 606). This Update provides for significant revisions to the recognition of revenue from contracts with customers across various industries. Under the new guidance, entities are required to apply a prescribed 5-step process to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The accounting for revenues associated with insurance products is not within the scope of this Update. The Update was originally effective for annual and interim periods beginning after December 15, 2017.  However, in July 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year to December 15, 2018. Early adoption will be allowed, but not before the original effective date. The Company is reviewing its policies and processes to ensure compliance with the requirements in this Update, upon adoption. The Company is currently assessing the impact this standard will have on its non-insurance operations.

ASU No. 2014-15—Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This Update will require management to assess an entity’s ability to continue as a going concern, and will require footnote disclosures in certain circumstances. Under the updated guidance, management should consider relevant conditions and evaluate whether it is probable that the entity will be unable to meet its obligations within one year after the issuance date of the financial statements. The Update is effective for annual periods ending December 31, 2016 and interim periods thereafter, with early adoption is permitted. The amendments in this Update will not impact the Company’s financial position or results of operations. However, the new guidance will require a formal assessment of going concern by management based on criteria prescribed in the new guidance. The Company is reviewing its policies and processes to ensure compliance with the new guidance.

ASU No. 2015-02—Consolidation—Amendments to the Consolidation Analysis.  This Update makes several targeted changes to generally accepted accounting principles, including a) eliminating the presumption that a general partner should consolidate a limited partnership and b) eliminating the consolidation model specific to limited partnerships. The amendments also clarify when fees and related party relationships should be considered in the consolidation of variable interest entities. The amendments in this Update are effective for annual and interim periods beginning after December 15, 2015. The Company is reviewing its policies and processes to ensure compliance with the requirements in this Update, upon adoption.

ASU No. 2015-03—Interest—Imputation of Interest. The objective of this Update is to eliminate diversity in practice related to the presentation of debt issuance costs. The amendments in this Update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update. The Update is effective for fiscal years beginning after December 15, 2015, and requires revised presentation of debt issuance costs in all periods presented in the financial statements. The Company is reviewing its processes to ensure compliance with the revised guidance.

ASU No. 2015-05 — Intangibles — Goodwill and Other — Internal-Use Software. The amendments in this Update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer’s accounting for service contracts. The Update is effect for annual and interim periods beginning after December 15, 2015. The Company is reviewing its policies and processes to ensure compliance with the revised guidance.

ASU No. 2015-09 — Financial Services—Insurance (Topic 944): Disclosures about Short-Duration Contracts. The amendments in this Update require additional disclosures for short-duration contracts issued by insurance entities. The additional disclosures focus on the liability for unpaid claims and claim adjustment expenses and include incurred and paid claims development information by accident year in tabular form, along with a reconciliation of this information to the statement of financial position. For accident years included in the development tables, the amendments also require disclosure of the total incurred-but-not-reported liabilities and expected development on reported claims, along with claims frequency information unless impracticable. Finally, the amendments require disclosure of the historical average annual percentage payout of incurred claims. With the exception of the current reporting period, claims development information may be presented as supplementary information. The Update is effective for annual periods beginning after December 15, 2015 and interim periods beginning after December 15, 2016. The Company is reviewing its products to determine the applicability and potential impact of the new disclosures.

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INCOME TAXES

6 Months Ended

Jun. 30, 2015

INCOME TAXES

INCOME TAXES

14.INCOME TAXES

In the IRS audit that concluded in 2012, the IRS proposed favorable and unfavorable adjustments to the Company’s 2003 through 2007 reported taxable incomes. The Company protested certain unfavorable adjustments and is seeking resolution at the IRS’ Appeals Division. If the IRS prevails at Appeals, and the Company does not litigate these issues, an acceleration of tax payments will occur. However, such payments, if they were to occur, would not materially impact the Company or its effective tax rate.

In conjunction with the Merger and as a result of the adjustments to the Company’s assets and liabilities which were discussed in Note 2, Summary of Significant Accounting Policies, the Company’s deferred tax assets and liabilities were remeasured as of the date of the Merger.

The components of the Company’s net deferred income tax liability are as follows:

	Successor			Predecessor
	Company			Company
	As of			As of
	June 30, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Deferred income tax assets:
Loss and credit carryforwards	$	74,720		$	516
Premium receivables and policy liabilities	—			95,298
Deferred compensation	231,732			194,223
Invested assets (other than unrealized gains)	—			63,901
Deferred policy acquisition costs	429,086			—
Premium on corporate debt	118,633			—
Net unrealized loss on investments	483,439			—
Other	23,587			—
Valuation allowance	(2,053		)	(2,206		)
	1,359,144			351,732
Deferred income tax liabilities:
Premium receivables and policy liabilities	128,645			—
VOBA and other intangibles	671,775			—
DAC and VOBA	—			1,078,533
Invested assets (other than unrealized gains)	1,626,896			—
Net unrealized gains on investments	—			799,123
Other	—			19,554
	2,427,316			1,897,210
Net deferred income tax liability	$	(1,068,172	)	$	(1,545,478	)

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015
	to			to			As of
	June 30, 2015			January 31, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Balance, beginning of period	$	137,593		$	193,244		$	105,881
Additions for tax positions of the current year	59,042			(5,010		)	57,463
Additions for tax positions of prior years	—			7,724			39,433
Reductions of tax positions of prior years:
Changes in judgment	(1,028		)	(58,365		)	(9,533		)
Settlements during the period	—			—			—
Lapses of applicable statute of limitations	—			—			—
Balance, end of period	$	195,607		$	137,593		$	193,244

The Company believes that it is possible that in the next 12 months approximately $142.5 million of these unrecognized tax benefits will be reduced as the Company anticipates receiving the revenue agent’s report for the examination of the 2008 through 2011 tax years. During the period of February 1, 2015 to June 30, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and the twelve months ended December 31, 2014 (Predecessor Company), ongoing discussions with the IRS related to the examination that is in progress for tax years ending December 31, 2008 through December 31, 2011 prompted the Company to revise its measurement of unrecognized tax benefits. These revisions included increasing prior determinations of amounts accrued for earlier years as well as reducing some previously accrued amounts. These changes were almost entirely related to timing issues. Therefore, aside from the cost of interest, such changes did not result in any impact on the Company’s effective tax rate.

The Company used its estimate of its annual 2015 and 2014 income in computing its effective income tax rates for the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the three and six months ended June 30, 2014 (Predecessor Company). The effective tax rates for the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the three and six months ended June 30, 2014 (Predecessor Company) were 34.1%, 33.2%, (27.7)%,  33.4%, and 33.3%, respectively. The recorded tax benefit for the period of January 1, 2015 to January 31, 2015 (Predecessor Company) includes the benefit associated with the re-measurement of the unrecognized tax benefits discussed in the preceding paragraph.

In general, the Company is no longer subject to U.S. federal, state, and local income tax examinations by taxing authorities for tax years that began before 2003.

Based on the Company’s current assessment of future taxable income, including available tax planning opportunities, the Company anticipates that it is more likely than not that it will generate sufficient taxable income to realize all of its material deferred tax assets. The Company did not record a valuation allowance against its material deferred tax assets as of June 30, 2015 (Successor Company).

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2015

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

10.COMMITMENTS AND CONTINGENCIES

The Company has entered into indemnity agreements with each of its current directors other than those that are employees of Dai-ichi Life that provide, among other things and subject to certain limitations, a contractual right to indemnification to the fullest extent permissible under the law. The Company has agreements with certain of its officers providing up to $10 million in indemnification. These obligations are in addition to the customary obligation to indemnify officers and directors contained in the Company’s governance documents.

Under insurance guaranty fund laws, in most states insurance companies doing business therein can be assessed up to prescribed limits for policyholder losses incurred by insolvent companies. In addition, from time to time, companies may be asked to contribute amounts beyond prescribed limits. Most insurance guaranty fund laws provide that an assessment may be excused or deferred if it would threaten an insurer’s own financial strength. The Company does not believe its insurance guaranty fund assessments will be materially different from amounts already provided for in the financial statements.

A number of civil jury verdicts have been returned against insurers, broker dealers and other providers of financial services involving sales, refund or claims practices, alleged agent misconduct, failure to properly supervise representatives, relationships with agents or persons with whom the insurer does business, and other matters. Often these lawsuits have resulted in the award of substantial judgments that are disproportionate to the actual damages, including material amounts of punitive and non-economic compensatory damages. In some states, juries, judges, and arbitrators have substantial discretion in awarding punitive non-economic compensatory damages which creates the potential for unpredictable material adverse judgments or awards in any given lawsuit or arbitration. Arbitration awards are subject to very limited appellate review. In addition, in some class action and other lawsuits, companies have made material settlement payments. Publicly held companies in general and the financial services and insurance industries in particular are also sometimes the target of law enforcement and regulatory investigations relating to the numerous laws and regulations that govern such companies. Some companies have been the subject of law enforcement or regulatory actions or other actions resulting from such investigations. The Company, in the ordinary course of business, is involved in such matters.

The Company establishes liabilities for litigation and regulatory actions when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. For matters where a loss is believed to be reasonably possible, but not probable, no liability is established. For such matters, the Company may provide an estimate of the possible loss or range of loss or a statement that such an estimate cannot be made. The Company reviews relevant information with respect to litigation and regulatory matters on a quarterly and annual basis and updates its established liabilities, disclosures and estimates of reasonably possible losses or range of loss based on such reviews.

After the entry into the Merger Agreement on June 3, 2014, four lawsuits were filed against the Company, our then current directors, Dai-ichi Life and DL Investment (Delaware), Inc. on behalf of alleged Company shareowners. On June 11, 2014, a putative class action lawsuit styled Edelman, et al. v. Protective Life Corporation, et al., Civil Action No. 01-CV- 2014-902474.00, was filed in the Circuit Court of Jefferson County, Alabama. On July 30, 2014, the plaintiff in Edelman filed an amended complaint. Three putative class action lawsuits were filed in the Court of Chancery of the State of Delaware, Martin, et al. v. Protective Life Corporation, et al., Civil Action No. 9794-CB, filed June 19, 2014, Leyendecker, et al. v. Protective Life Corporation, et al., Civil Action No. 9931-CB, filed July 22, 2014 and Hilburn, et al. v. Protective Life Corporation, et al., Civil Action No. 9937-CB, filed July 23, 2014. The Delaware Court of Chancery consolidated the Martin,  Leyendecker, and Hilburn actions under the caption In re Protective Life Corp. Stockholders Litigation, Consolidated Civil Action No. 9794-CB, designated the Hilburn complaint as the operative consolidated complaint (the “Delaware Action”) and appointed Charlotte Martin, Samuel J. Leyendecker, Jr., and Deborah J. Hilburn to serve as co-lead plaintiffs. These lawsuits alleged that our Board of Directors breached its fiduciary duties to the Company’s shareowners, that the Merger involved an unfair price, an inadequate sales process, and unreasonable deal protection devices that purportedly precluded competing offers, and that the preliminary proxy statement filed with the SEC on July 10, 2014 failed to disclose purportedly material information. The complaints also alleged that the Company, Dai-ichi Life and DL Investment (Delaware), Inc. aided and abetted those alleged breaches of fiduciary duties. The complaints sought injunctive relief, including enjoining or rescinding the Merger, and attorneys’ and other fees and costs, in addition to other relief. The Delaware Action also sought an award of unspecified damages.

With respect to the Edelman lawsuit, on September 5, 2014, the court held a hearing to address motions to dismiss the lawsuit filed on behalf of the Company, the members of the Company’s Board, and DL Investment (Delaware), Inc. On September 19, 2014, the court granted those motions and dismissed the Edelman lawsuit in its entirety and with prejudice, pending a possible appeal by the plaintiff. With respect to the Delaware Action, on September 24, 2014, the Company, each of the members of the Company’s Board, Dai-ichi Life, and DL Investment (Delaware), Inc. entered into a Memorandum of Understanding (the “MOU”) with the plaintiffs in that case, which set forth the parties’ agreement in principle for a settlement of the Delaware Action. As set forth in the MOU, the Company, the members of the Company’s Board, Dai-ichi Life, and DL Investment (Delaware), Inc. agreed to the settlement solely to eliminate the burden, expense, distraction, and uncertainties inherent in further litigation, and without admitting any liability or wrongdoing. The MOU contemplated that the parties would seek to enter into a stipulation of settlement providing for the certification of a mandatory non opt-out class, for settlement purposes only, to include any and all record and beneficial owners of shares (excluding the members of the Company’s Board and their immediate family members, any entity in which any member of the Company’s Board has a controlling interest, and any successors in interest thereto) that held shares at any time during the period beginning on June 3, 2014, through the date of consummation or termination of the Merger, including any and all of their respective successors in interest, successors, predecessors in interest, representatives, trustees, executors, administrators, heirs, assigns, or transferees, immediate and remote, and any person or entity acting for or on behalf of, or claiming under, any of them, together with their predecessors, successors and assigns, and a global release of claims relating to the Merger as set forth in the MOU. As part of the settlement, the Company agreed to make certain additional disclosures related to the Merger which are set forth in the Company’s Form 8-K filed on September 25, 2014 and which supplement the information contained in the Company’s definitive proxy statement filed with the SEC on August 25, 2014, as amended on August 27, 2014. Nothing in the Form 8-K or stipulation of settlement shall be deemed an admission of the legal necessity or materiality of any of the disclosures set forth in the Form 8-K. The stipulation of settlement and release of all claims in the Delaware Action was approved by the Court of Chancery of the State of Delaware on June 16, 2015. The terms of the settlement had no effect on the consideration received by Company shareowners in connection with the completion of the Merger, and the amount of attorneys’ fees and expenses awarded to the plaintiffs’ counsel did not have a material impact upon the Company.

The Company was audited by the IRS and the IRS proposed favorable and unfavorable adjustments to the Company’s 2003 through 2007 reported taxable income. The Company protested certain unfavorable adjustments and sought resolution at the IRS’ Appeals Division. The case has followed normal procedure and is now under review at Congress’ Joint Committee on Taxation. The Company believes the matter will conclude within the next twelve months. If the IRS prevails on every issue that it identified in this audit, and the Company does not litigate these issues, then the Company will make an income tax payment of approximately $26.6 million. However, this payment, if it were to occur, would not materially impact the Company or its effective tax rate.

Through the acquisition of MONY by PLICO certain income tax credit carryforwards, which arose in MONY’s pre-acquisition tax years, transferred to the Company. This transfer was in accordance with the applicable rules of the Internal Revenue Code and the related Regulations. In spite of this transfer, AXA, the former parent of the consolidated income tax return group in which MONY was a member, retains the right to utilize these credits in the future to offset future increases in its 2010 through 2013 tax liabilities. The Company had determined that, based on all information known as of the acquisition date and through the March 31, 2014 reporting date, it was probable that a loss of the utilization of these carryforwards had been incurred. Due to indemnification received from AXA during the quarter ending June 30, 2014, the probability of loss of these carryforwards has been eliminated. Accordingly, in the table summarizing the fair value of net assets acquired from the Acquisition, the amount of the deferred tax asset from the credit carryforwards is no longer offset by a liability.

Certain of the Company’s insurance subsidiaries, as well as certain other insurance companies for which the Company has coinsured blocks of life insurance and annuity policies, are under audit for compliance with the unclaimed property laws of a number of states. The audits are being conducted on behalf of the treasury departments or unclaimed property administrators in such states. The focus of the audits is on whether there have been unreported deaths, maturities, or policies that have exceeded limiting age with respect to which death benefits or other payments under life insurance or annuity policies should be treated as unclaimed property that should be escheated to the state. The Company is presently unable to estimate the reasonably possible loss or range of loss that may result from the audits due to a number of factors, including uncertainty as to the legal theory or theories that may give rise to liability, the early stages of the audits being conducted, and, with respect to one block of life insurance policies that is co-insured by a subsidiary of the Company, uncertainty as to whether the Company or other companies are responsible for the liabilities, if any, arising in connection with such policies. The Company will continue to monitor the matter for any developments that would make the loss contingency associated with the audits probable or reasonably estimable.

Certain of the Company’s subsidiaries are under a targeted multi-state examination with respect to their claims paying practices and their use of the U.S. Social Security Administration’s Death Master File or similar databases (a “Death Database”) to identify unreported deaths in their life insurance policies, annuity contracts and retained asset accounts. There is no clear basis in previously existing law for requiring a life insurer to search for unreported deaths in order to determine whether a benefit is owed, and substantial legal authority exists to support the position that the prevailing industry practice was lawful. A number of life insurers, however, have entered into settlement or consent agreements with state insurance regulators under which the life insurers agreed to implement procedures for periodically comparing their life insurance and annuity contracts and retained asset accounts against a Death Database, treating confirmed deaths as giving rise to a death benefit under their policies, locating beneficiaries and paying them the benefits and interest, and escheating the benefits and interest as well as penalties to the state if the beneficiary could not be found. It has been publicly reported that the life insurers have paid administrative and/or examination fees to the insurance regulators in connection with the settlement or consent agreements. The Company believes it is reasonably possible that insurance regulators could demand from the Company administrative and/or examination fees relating to the targeted multi-state examination. Based on publicly reported payments by other life insurers, the Company estimates the range of such fees to be from $0 to $3.5 million.

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MORTGAGE LOANS

6 Months Ended

Jun. 30, 2015

MORTGAGE LOANS

MORTGAGE LOANS

6.MORTGAGE LOANS

Mortgage Loans

The Company invests a portion of its investment portfolio in commercial mortgage loans. As of June 30, 2015 (Successor Company), the Company’s mortgage loan holdings were approximately $5.7 billion. The Company has specialized in making loans on either credit-oriented commercial properties or credit-anchored strip shopping centers and apartments. The Company’s underwriting procedures relative to its commercial loan portfolio are based, in the Company’s view, on a conservative and disciplined approach. The Company concentrates on a small number of commercial real estate asset types associated with the necessities of life (retail, multi-family, senior living, professional office buildings, and warehouses). The Company believes that these asset types tend to weather economic downturns better than other commercial asset classes in which it has chosen not to participate. The Company believes this disciplined approach has helped to maintain a relatively low delinquency and foreclosure rate throughout its history. The majority of the Company’s mortgage loans portfolio was underwritten and funded by the Company. From time to time, the Company may acquire loans in conjunction with an acquisition.

The Company’s commercial mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, and net of valuation allowances. Interest income is accrued on the principal amount of the loan based on the loan’s contractual interest rate. Amortization of premiums and discounts is recorded using the effective yield method. Interest income, amortization of premiums and discounts and prepayment fees are reported in net investment income.

As of February 1, 2015 all mortgage loans were measured at fair value. Each mortgage loan was individually analyzed to determine the fair value. Each loan was either analyzed and assigned a discount rate or given an impairment, based on whether facts and circumstances which, as of the acquisition date, indicated less than full projected collections of contractual principal and interest payments. Various market factors were considered in determining the net present value of the expected cash flow stream or underlying real estate collateral, including the characteristics of the borrower, the underlying collateral, underlying credit worthiness of the tenants, and tenant payment history. Known events and risks, such as refinancing risks, were also considered in the fair value determination. In certain cases, fair value was based on the NPV of the expected cash flow stream or the underlying value of the real estate collateral.

Certain of the mortgage loans have call options between 3 and 10 years. However, if interest rates were to significantly increase, we may be unable to exercise the call options on our existing mortgage loans commensurate with the significantly increased market rates. As of June 30, 2015, assuming the loans are called at their next call dates, approximately $121.1 million would become due for the remainder of 2015, $953.0 million in 2016 through 2020, $377.9 million in 2021 through 2025, and $118.3 million thereafter.

The Company offers a type of commercial mortgage loan under which the Company will permit a loan-to-value ratio of up to 85% in exchange for a participating interest in the cash flows from the underlying real estate. As of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), approximately $548.4 million and $553.6 million, respectively, of the Company’s mortgage loans have this participation feature. Cash flows received as a result of this participation feature are recorded as interest income. During the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company), January 1, 2015 to January 31, 2015 (Predecessor Company), and for the three and six months ended June 30, 2014 (Predecessor Company), the Company recognized $3.3 million, $5.1 million, $0.1 million, $2.8 million, and $5.8 million, respectively, of participating mortgage loan income.

As of June 30, 2015 (Successor Company), approximately $4.2 million, or 0.01%, of invested assets consisted of nonperforming mortgage loans, restructured mortgage loans, and/or mortgage loans that were foreclosed and were converted to real estate properties. The Company does not expect these investments to adversely affect its liquidity or ability to maintain proper matching of assets and liabilities. During the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company entered into certain mortgage loan transactions that were accounted for as troubled debt restructurings under Topic 310 of the FASB ASC. For all mortgage loans, the impact of troubled debt restructurings is generally reflected in the Company’s investment balance and in the allowance for mortgage loan credit losses. Transactions accounted for as troubled debt restructurings during the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company) included either the acceptance of assets in satisfaction of principal during the respective periods or at a future date, and were the result of agreements between the creditor and the debtor. During the period of February 1, 2015 to June 30, 2015 (Successor Company), the Company accepted or agreed to accept assets of $1.5 million in satisfaction of $2.0 million of principal and for the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company accepted or agreed to accept assets of $11.3 million in satisfaction of $13.8 million of principal. These transactions resulted in no material realized losses in the Company’s investment in mortgage loans net of existing discounts recorded for mortgage loans losses for the period of February 1, 2015 to June 30, 2015 (Successor Company).

The Company’s mortgage loan portfolio consists of two categories of loans: 1) those not subject to a pooling and servicing agreement and 2) those subject to a contractual pooling and servicing agreement. As of June 30, 2015 (Successor Company), $4.2 million of mortgage loans not subject to a pooling and servicing agreement were nonperforming mortgage loans, restructured mortgage loans, and/or mortgage loans that were foreclosed and were converted to real estate properties. None of the restructured loans were nonperforming during the periods of February 1, 2015 to June 30, 2015 (Successor Company) and January 1, 2015 to January 31, 2015 (Predecessor Company). The Company did not foreclose on any nonperforming loans not subject to a pooling and servicing agreement during the periods of February 1, 2015 to June 30, 2015 (Successor Company) and January 1, 2015 to January 31, 2015 (Predecessor Company).

As of June 30, 2015 (Successor Company), none of the loans subject to a pooling and servicing agreement were nonperforming or restructured. The Company did not foreclose on any nonperforming loans subject to pooling and servicing agreement during the periods of February 1, 2015 to June 30, 2015 (Successor Company) and January 1, 2015 to January 31, 2015 (Predecessor Company).

As of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), the Company had an allowance for mortgage loan credit losses of $0.5 million and $5.7 million, respectively. Due to the Company’s loss experience and nature of the loan portfolio, the Company believes that a collectively evaluated allowance would be inappropriate. The Company believes an allowance calculated through an analysis of specific loans that are believed to have a higher risk of credit impairment provides a more accurate presentation of expected losses in the portfolio and is consistent with the applicable guidance for loan impairments in ASC Subtopic 310. Since the Company uses the specific identification method for calculating the allowance, it is necessary to review the economic situation of each borrower to determine those that have higher risk of credit impairment. The Company has a team of professionals that monitors borrower conditions such as payment practices, borrower credit, operating performance, and property conditions, as well as ensuring the timely payment of property taxes and insurance. Through this monitoring process, the Company assesses the risk of each loan. When issues are identified, the severity of the issues are assessed and reviewed for possible credit impairment. If a loss is probable, an expected loss calculation is performed and an allowance is established for that loan based on the expected loss. The expected loss is calculated as the excess carrying value of a loan over either the present value of expected future cash flows discounted at the loan’s original effective interest rate, or the current estimated fair value of the loan’s underlying collateral. A loan may be subsequently charged off at such point that the Company no longer expects to receive cash payments, the present value of future expected payments of the renegotiated loan is less than the current principal balance, or at such time that the Company is party to foreclosure or bankruptcy proceedings associated with the borrower and does not expect to recover the principal balance of the loan.

A charge off is recorded by eliminating the allowance against the mortgage loan and recording the renegotiated loan or the collateral property related to the loan as investment real estate on the balance sheet, which is carried at the lower of the appraised fair value of the property or the unpaid principal balance of the loan, less estimated selling costs associated with the property:

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015
	to			to			As of
	June 30, 2015			January 31, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Beginning balance	$	—		$	5,720		$	3,130
Charge offs	—			(861		)	(675		)
Recoveries	(638		)	(2,359		)	(2,600		)
Provision	1,173			—			5,865
Ending balance	$	535		$	2,500		$	5,720

It is the Company’s policy to cease to carry accrued interest on loans that are over 90 days delinquent. For loans less than 90 days delinquent, interest is accrued unless it is determined that the accrued interest is not collectible. If a loan becomes over 90 days delinquent, it is the Company’s general policy to initiate foreclosure proceedings unless a workout arrangement to bring the loan current is in place. For loans subject to a pooling and servicing agreement, there are certain additional restrictions and/or requirements related to workout proceedings, and as such, these loans may have different attributes and/or circumstances affecting the status of delinquency or categorization of those in nonperforming status. An analysis of the delinquent loans is shown in the following chart.

					Greater
Successor Company	30-59 Days		60-89 Days		than 90 Days		Total
As of June 30, 2015	Delinquent		Delinquent		Delinquent		Delinquent
	(Dollars In Thousands)
Commercial mortgage loans	$	8,045	$	2,370	$	296	$	10,711
Number of delinquent commercial mortgage loans	5		2		1		8
Predecessor Company
As of December 31, 2014
Commercial mortgage loans	$	8,972	$	—	$	1,484	$	10,456
Number of delinquent commercial mortgage loans	4		—		1		5

The Company’s commercial mortgage loan portfolio consists of mortgage loans that are collateralized by real estate. Due to the collateralized nature of the loans, any assessment of impairment and ultimate loss given a default on the loans is based upon a consideration of the estimated fair value of the real estate. The Company limits accrued interest income on impaired loans to 90 days of interest. Once accrued interest on the impaired loan is received, interest income is recognized on a cash basis. For information regarding impaired loans, please refer to the following chart:

			Unpaid				Average		Interest		Cash Basis
Successor Company	Recorded		Principal		Related		Recorded		Income		Interest
As of June 30, 2015	Investment		Balance		Allowance		Investment		Recognized		Income
	(Dollars In Thousands)
Commercial mortgage loans:
With no related allowance recorded	$	9,022	$	12,243	$	—	$	1,504	$	199	$	168
With an allowance recorded	1,500		2,035		535		1,500		31		31
Predecessor Company
As of December 31, 2014
Commercial mortgage loans:
With no related allowance recorded	$	—	$	—	$	—	$	—	$	—	$	—
With an allowance recorded	19,632		20,603		5,720		3,272		1,224		1,280

Mortgage loans that were modified in a troubled debt restructuring were as follows:

		Pre-Modification		Post-Modification
		Outstanding		Outstanding
Successor Company	Number of	Recorded		Recorded
As of June 30, 2015	Contracts	Investment		Investment
		(Dollars In Thousands)
Troubled debt restructuring:
Commercial mortgage loans	1	$	2,035	$	1,500
Predecessor Company
As of December 31, 2014
Troubled debt restructuring:
Commercial mortgage loans	6	$	28,648	$	19,593

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MORTGAGE LOANS (Details 5) - Commercial mortgage loans $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015 USD ($) contract	Dec. 31, 2014 USD ($) contract
Troubled debt restructuring:
Number of Contracts | contract	1
Pre-Modification Outstanding Recorded Investment	$ 2,035
Post-Modification Outstanding Recorded Investment	$ 1,500
Predecessor
Troubled debt restructuring:
Number of Contracts | contract		6
Pre-Modification Outstanding Recorded Investment		$ 28,648
Post-Modification Outstanding Recorded Investment		$ 19,593

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MONY CLOSED BLOCK OF BUSINESS

6 Months Ended

Jun. 30, 2015

MONY CLOSED BLOCK OF BUSINESS

MONY CLOSED BLOCK OF BUSINESS

4.MONY CLOSED BLOCK OF BUSINESS

In 1998, MONY Life Insurance Company (“MONY”) converted from a mutual insurance company to a stock corporation (“demutualization”). In connection with its demutualization, an accounting mechanism known as a closed block (the “Closed Block”) was established for certain individuals’ participating policies in force as of the date of demutualization. Assets, liabilities, and earnings of the Closed Block are specifically identified to support its participating policyholders. The Company acquired the Closed Block in conjunction with the acquisition of MONY in 2013.

Assets allocated to the Closed Block inure solely to the benefit of each Closed Block’s policyholders and will not revert to the benefit of MONY or the Company. No reallocation, transfer, borrowing or lending of assets can be made between the Closed Block and other portions of MONY’s general account, any of MONY’s separate accounts or any affiliate of MONY without the approval of the Superintendent of The New York State Insurance Department (the “Superintendent”). Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the general account.

The excess of Closed Block liabilities over Closed Block assets (adjusted to exclude the impact of related amounts in accumulated other comprehensive income (loss) (“AOCI”)) at the merger date represented the estimated maximum future post-tax earnings from the Closed Block that would be recognized in income from continuing operations over the period the policies and contracts in the Closed Block remain in force. In connection with the acquisition of MONY, the Company developed an actuarial calculation of the expected timing of MONY’s Closed Block’s earnings as of October 1, 2013. Pursuant to the acquisition of the Company by Dai-ichi Life, this actuarial calculation of the expected timing of MONY’s Closed Block earnings was recalculated and reset as of February 1, 2015, along with the establishment of a policyholder dividend obligation as of such date.

If the actual cumulative earnings from the Closed Block are greater than the expected cumulative earnings, only the expected earnings will be recognized in the Company’s net income. Actual cumulative earnings in excess of expected cumulative earnings at any point in time are recorded as a policyholder dividend obligation because they will ultimately be paid to Closed Block policyholders as an additional policyholder dividend unless offset by future performance that is less favorable than originally expected. If a policyholder dividend obligation has been previously established and the actual Closed Block earnings in a subsequent period are less than the expected earnings for that period, the policyholder dividend obligation would be reduced (but not below zero). If, over the period the policies and contracts in the Closed Block remain in force, the actual cumulative earnings of the Closed Block are less than the expected cumulative earnings, only actual earnings would be recognized in income from continuing operations. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside the Closed Block.

Many expenses related to Closed Block operations, including amortization of VOBA, are charged to operations outside of the Closed Block; accordingly, net revenues of the Closed Block do not represent the actual profitability of the Closed Block operations. Operating costs and expenses outside of the Closed Block are, therefore, disproportionate to the business outside of the Closed Block.

Summarized financial information for the Closed Block as of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company) is as follows.

	Successor		Predecessor
	Company		Company
	As of		As of
	June 30, 2015		December 31, 2014
	(Dollars In Thousands)		(Dollars In Thousands)
Closed block liabilities
Future policy benefits, policyholders’ account balances and other policyholder liabilities	$	6,062,552	$	6,138,505
Policyholder dividend obligation	52,283		366,745
Other liabilities	18,885		53,838
Total closed block liabilities	6,133,720		6,559,088
Closed block assets
Fixed maturities, available-for-sale, at fair value	$	4,424,934	$	4,524,037
Equity securities, available-for-sale, at fair value	—		5,387
Mortgage loans on real estate	345,678		448,855
Policy loans	755,692		771,120
Cash and other invested assets	34,511		30,984
Other assets	154,346		221,270
Total closed block assets	5,715,161		6,001,653
Excess of reported closed block liabilities over closed block assets	418,559		557,435
Portion of above representing accumulated other comprehensive income:
Net unrealized investment gains (losses) net of deferred tax benefit of $0 (Successor) and $0 (Predecessor); net of policyholder dividend obligation of $166,434 (Successor) and $106,886 (Predecessor)	—		—
Future earnings to be recognized from closed block assets and closed block liabilities	$	418,559	$	557,435

Reconciliation of the policyholder dividend obligation is as follows:

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015			For The Six
	to			to			Months Ended
	June 30, 2015			January 31, 2015			June 30, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Policyholder dividend obligation, beginning of period	$	323,432		$	366,745		$	190,494
Applicable to net revenue (losses)	(15,096		)	(1,369		)	(6,951		)
Change in net unrealized investment gains (losses) allocated to the policyholder dividend obligation	(256,053		)	135,077			145,329
Policyholder dividend obligation, end of period	$	52,283		$	500,453		$	328,872

Closed Block revenues and expenses were as follows:

	Successor Company				Predecessor Company
	For The Three		February 1, 2015		January 1, 2015		For The Three		For The Six
	Months Ended		to		to		Months Ended		Months Ended
	June 30, 2015		June 30, 2015		January 31, 2015		June 30, 2014		June 30, 2014
	(Dollars In Thousands)				(Dollars In Thousands)
Revenues
Premiums and other income	$	49,998	$	81,669	$	15,065	$	53,073	$	102,846
Net investment income (loss)	54,833		87,681		19,107		60,416		112,623
Net investment gains (losses)	2,216		2,850		568		1,086		6,105
Total revenues	107,047		172,200		34,740		114,575		221,574
Benefits and other deductions
Benefits and settlement expenses	98,975		154,746		31,152		103,209		199,535
Other operating expenses	263		474		—		383		90
Total benefits and other deductions	99,238		155,220		31,152		103,592		199,625
Net revenues before income taxes	7,809		16,980		3,588		10,983		21,949
Income tax expense	2,733		5,943		1,256		3,844		7,682
Net revenues	$	5,076	$	11,037	$	2,332	$	7,139	$	14,267

XML

INVESTMENT OPERATIONS

6 Months Ended

Jun. 30, 2015

INVESTMENT OPERATIONS

INVESTMENT OPERATIONS

5.INVESTMENT OPERATIONS

Net realized gains (losses) for all other investments are summarized as follows:

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Fixed maturities	$	3,339		$	3,712		$	6,891		$	20,198		$	27,568
Equity securities	21			21			—			—			—
Impairments on fixed maturity securities	(5,734		)	(5,734		)	(481		)	(1,460		)	(3,051		)
Impairments on equity securities	—			—			—			—			—
Modco trading portfolio	(108,741		)	(141,901		)	73,062			60,989			127,292
Other investments	3,044			775			1,200			(1,039		)	(2,598		)
Total realized gains (losses) - investments	$	(108,071	)	$	(143,127	)	$	80,672		$	78,688		$	149,211

For the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company), gross realized gains on investments available-for-sale (fixed maturities, equity securities, and short-term investments) were $5.4 million and $6.9 million and gross realized losses were $7.8 million and $8.9 million, respectively, including $5.7 million and $5.7 million of impairment losses, respectively.

For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), gross realized gains on investments available-for-sale (fixed maturities, equity securities, and short-term investments) were $6.9 million and gross realized losses were $0.5 million, including $0.4 million of impairment losses.

For the three and six months ended June 30, 2014 (Predecessor Company), gross realized gains on investments available-for-sale (fixed maturities, equity securities, and short-term investments) were $20.4 million and $28.10 million and gross realized losses were $1.6 million and $3.4 million, including $1.4 million and $2.9 million of impairment losses, respectively.

For the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company), the Company sold securities in an unrealized gain position with a fair value (proceeds) of $432.2 million and $715.0 million, respectively. The gains realized on the sale of these securities was $5.4 million and $6.9 million, respectively.

For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company sold securities in an unrealized gain position with a fair value (proceeds) of $172.6 million. The gain realized on the sale of these securities was $6.9 million.

For the three and six months ended June 30, 2014 (Predecessor Company), the Company sold securities in an unrealized gain position with a fair value (proceeds) of $306.3 million and $571.0 million, respectively. The gains realized on the sale of these securities was $20.4 million and $28.1 million, respectively.

For the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company), the Company sold securities in an unrealized loss position with a fair value (proceeds) of $28.6 million and $49.3 million, respectively. The loss realized on the sale of these securities was $2.1 million and $3.2 million, respectively. The Company made the decision to exit these holdings in conjunction with our overall asset liability management process.

For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company sold securities in an unrealized loss position with a fair value (proceeds) of $0.4 million. The loss realized on the sale of these securities were immaterial to the Company. The Company made the decision to exit these holdings in conjunction with our overall asset liability management process.

For the three and six months ended June 30, 2014 (Predecessor Company), the Company sold securities in an unrealized loss position with a fair value (proceeds) of $1.6 million and $4.4 million, respectively. The losses realized on the sale of these securities were $0.2 million and $0.5 million, respectively. The Company made the decision to exit these holdings in conjunction with our overall asset liability management process.

The amortized cost and fair value of the Company’s investments classified as available-for-sale as of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), are as follows:

			Gross		Gross					Total OTTI
Successor Company	Amortized		Unrealized		Unrealized			Fair		Recognized
As of June 30, 2015	Cost		Gains		Losses			Value		in OCI(1)
			(Dollars In Thousands)
Fixed maturities:
Residential mortgage-backed securities	$	1,594,167	$	6,244	$	(23,585	)	$	1,576,826	$	—
Commercial mortgage-backed securities	1,236,987		271		(34,102		)	1,203,156		—
Other asset-backed securities	820,349		2,062		(22,940		)	799,471		—
U.S. government-related securities	1,644,086		427		(42,983		)	1,601,530		—
Other government-related securities	19,578		—		(796		)	18,782		—
States, municipals, and political subdivisions	1,720,059		59		(135,050		)	1,585,068		—
Corporate securities	28,044,507		51,209		(1,926,339		)	26,169,377		(7,024		)
Preferred stock	64,362		—		(2,695		)	61,667		—
	35,144,095		60,272		(2,188,490		)	33,015,877		(7,024		)
Equity securities	725,747		903		(12,498		)	714,152		—
Short-term investments	160,855		—		—			160,855		—
	$	36,030,697	$	61,175	$	(2,200,988	)	$	33,890,884	$	(7,024	)
Predecessor Company
As of December 31, 2014
Fixed maturities:
Residential mortgage-backed securities	$	1,374,206	$	56,330	$	(12,278	)	$	1,418,258	$	6,404
Commercial mortgage-backed securities	1,119,979		59,637		(2,364		)	1,177,252		—
Other asset-backed securities	857,441		17,885		(35,950		)	839,376		(95		)
U.S. government-related securities	1,394,028		44,149		(9,282		)	1,428,895		—
Other government-related securities	16,939		3,233		—			20,172		—
States, municipals, and political subdivisions	1,391,526		296,594		(431		)	1,687,689		—
Corporate securities	24,765,303		2,759,255		(139,031		)	27,385,527		—
	30,919,422		3,237,083		(199,336		)	33,957,169		6,309
Equity securities	757,259		38,669		(14,182		)	781,746		—
Short-term investments	155,500		—		—			155,500		—
	$	31,832,181	$	3,275,752	$	(213,518	)	$	34,894,415	$	6,309

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

The preferred stock shown above as of June 30, 2015 (Successor Company) is included in the equity securities total as of December 31, 2014 (Predecessor Company).

The amortized cost and fair value of the Company’s investments classified as held-to-maturity as of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), are as follows:

			Gross		Gross					Total OTTI
Successor Company	Amortized		Unrealized		Unrealized			Fair		Recognized
As of June 30, 2015	Cost		Gains		Losses			Value		in OCI
	(Dollars In Thousands)
Fixed maturities:
Other	$	565,334	$	—	$	(75,384	)	$	489,950	$	—
	$	565,334	$	—	$	(75,384	)	$	489,950	$	—

Predecessor Company
As of December 31, 2014
Fixed maturities:
Other	$	435,000	$	50,422	$	—	$	485,422	$	—
	$	435,000	$	50,422	$	—	$	485,422	$	—

During the period of February 1, 2015 to June 30, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the six months ended June 30, 2014 (Predecessor Company), the Company did not record any other-than-temporary impairments on held-to-maturity securities. The Company’s held-to-maturity securities had $75.4 million of gross unrecognized holding losses as of June 30, 2015 (Successor Company).  The Company does not consider these unrecognized holding losses to be other-than-temporary based on certain positive factors associated with the securities which include credit ratings, financial health of the issuer, continued access of the issuer to capital markets and other pertinent information.

The Company’s held-to-maturity securities had no gross unrecognized holding losses as of December 31, 2014 (Predecessor Company).

As of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), the Company had an additional $2.7 billion and $2.8 billion of fixed maturities, $8.3 million and $21.5 million of equity securities, and $43.8 million and $95.1 million of short-term investments classified as trading securities, respectively.

The amortized cost and fair value of available-for-sale and held-to-maturity fixed maturities as of June 30, 2015 (Successor Company), by expected maturity, are shown below. Expected maturities of securities without a single maturity date are allocated based on estimated rates of prepayment that may differ from actual rates of prepayment.

	Successor Company
	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	$	849,305	$	849,114	$	—	$	—
Due after one year through five years	5,172,275		5,141,272		—		—
Due after five years through ten years	8,508,443		8,293,471		—		—
Due after ten years	20,614,072		18,732,020		565,334		489,950
	$	35,144,095	$	33,015,877	$	565,334	$	489,950

During the three months ended June 30, 2015 (Successor Company) and the period of February 1, 2015 to June 30, 2015 (Successor Company), the Company recorded pre-tax other-than-temporary impairments of investments of $13.4 million and $13.4 million, respectively. Of the $13.4 million of impairments for the three months ended June 30, 2015 (Successor Company) and the period of February 1, 2015 to June 30, 2015 (Successor Company) $5.7 million was recorded in earnings and $7.7 million was recorded in other comprehensive income (loss).

There were no other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell for the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company).

During the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company recorded pre-tax other-than-temporary impairments of investments of $0.6 million, all of which related to fixed maturities. Credit impairments recorded in earnings during the period were $0.5 million. During the period of January 1, 2015 to January 31, 2015 (Predecessor Company), $0.1 million of non-credit losses previously recorded in other comprehensive income were recorded in earnings as credit losses. There were no other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell for the period of January 1, 2015 to January 31, 2015 (Predecessor Company).

During the three and six months ended June 30, 2014 (Predecessor Company), the Company recorded pre-tax other-than-temporary impairments of investments of $0.5 million and $0.9 million, respectively, all of which related to fixed maturities. Credit impairments recorded in earnings during the three and six months ended June 30, 2014 (Predecessor Company) were $1.5 million and $3.1 million, respectively. During the three and six months ended June 30, 2014 (Predecessor Company), $1.0 million and $2.2 million, respectively, of non-credit losses previously recorded in other comprehensive income (loss) were recorded in earnings as credit losses. There were no other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell for the three and six months ended June 30, 2014 (Predecessor Company).

The following chart is a rollforward of available-for-sale credit losses on fixed maturities held by the Company for which a portion of an other-than-temporary impairment was recognized in other comprehensive income (loss):

	Successor				Predecessor
	Company				Company
	For The Three		February 1, 2015		January 1, 2015		For The Three			For The Six
	Months Ended		to		to		Months Ended			Months Ended
	June 30, 2015		June 30, 2015		January 31, 2015		June 30, 2014			June 30, 2014
	(Dollars In Thousands)				(Dollars In Thousands)
Beginning balance	$	—	$	—	$	15,478	$	20,839		$	41,692
Additions for newly impaired securities	4,472		4,472		—		—			—
Additions for previously impaired securities	—		—		221		553			1,027
Reductions for previously impaired securities due to a change in expected cash flows	—		—		—		(3,407		)	(24,734		)
Reductions for previously impaired securities that were sold in the current period	—		—		—		—			—
Ending balance	$	4,472	$	4,472	$	15,699	$	17,985		$	17,985

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 June 30, 2015 (Successor Company):

	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	$	1,043,439	$	(23,585	)	$	—	$	—	$	1,043,439	$	(23,585	)
Commercial mortgage-backed securities	1,125,342		(34,102		)	—		—		1,125,342		(34,102		)
Other asset-backed securities	723,695		(22,940		)	—		—		723,695		(22,940		)
U.S. government-related securities	1,569,203		(42,983		)	—		—		1,569,203		(42,983		)
Other government-related securities	18,782		(796		)	—		—		18,782		(796		)
States, municipalities, and political subdivisions	1,583,913		(135,050		)	—		—		1,583,913		(135,050		)
Corporate securities	23,716,026		(1,926,339		)	—		—		23,716,026		(1,926,339		)
Preferred stock	61,667		(2,695		)	—		—		61,667		(2,695		)
Equities	496,563		(12,498		)	—		—		496,563		(12,498		)
	$	30,338,630	$	(2,200,988	)	$	—	$	—	$	30,338,630	$	(2,200,988	)

The preferred stock shown above as of June 30, 2015 (Successor Company) is included in the equity securities total as of December 31, 2014 (Predecessor Company).

The book value of the Company’s investment portfolio was marked to fair value as of February 1, 2015 (Successor Company), in conjunction with the Dai-ichi Merger which resulted in the elimination of previously unrealized gains and losses from accumulated other comprehensive income. The level of interest rates as of February 1, 2015 (Successor Company) resulted in an increase in the fair value of the Company’s investments. Since February 1, 2015 (Successor Company) interest rates have increased resulting in net unrealized losses in the Company’s investment portfolio.

The Company does not consider these unrealized loss positions to be other-than-temporary, based on the aggregate factors discussed previously and because the Company has the ability and intent to hold these investments until the fair values recover, and does not intend to sell or expect to be required to sell the securities before recovering the Company’s amortized cost of the securities.

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 December 31, 2014 (Predecessor Company):

	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	$	166,271	$	(9,562	)	$	67,280	$	(2,716	)	$	233,551	$	(12,278	)
Commercial mortgage-backed securities	49,909		(334		)	102,529		(2,030		)	152,438		(2,364		)
Other asset-backed securities	108,666		(6,473		)	537,486		(29,477		)	646,152		(35,950		)
U.S. government-related securities	231,917		(3,868		)	280,803		(5,414		)	512,720		(9,282		)
Other government-related securities	—		—			—		—			—		—
States, municipalities, and political subdivisions	1,904		(134		)	10,482		(297		)	12,386		(431		)
Corporate securities	1,659,287		(76,341		)	776,864		(62,690		)	2,436,151		(139,031		)
Equities	17,430		(217		)	129,719		(13,965		)	147,149		(14,182		)
	$	2,235,384	$	(96,929	)	$	1,905,163	$	(116,589	)	$	4,140,547	$	(213,518	)

RMBS had a gross unrealized loss greater than twelve months of $2.7 million as of December 31, 2014 (Predecessor Company). Factors such as the credit enhancement within the deal structure, the average life of the securities, and the performance of the underlying collateral support the recoverability of these investments.

CMBS had a gross unrealized loss greater than twelve months of $2.0 million as of December 31, 2014 (Predecessor Company). Factors such as the credit enhancement within the deal structure, the average life of the securities, and the performance of the underlying collateral support the recoverability of these investments.

The other asset-backed securities had a gross unrealized loss greater than twelve months of $29.5 million as of December 31, 2014 (Predecessor Company). This category predominately includes student-loan backed auction rate securities, the underlying collateral, of which is at least 97% guaranteed by the Federal Family Education Loan Program (“FFELP”). These unrealized losses have occurred within the Company’s auction rate securities (“ARS”) portfolio since the market collapse during 2008. At this time, the Company has no reason to believe that the U.S. Department of Education would not honor the FFELP guarantee, if it were necessary.

The U.S. government-related category had gross unrealized losses greater than twelve months of $5.4 million as of December 31, 2014 (Predecessor Company). These declines were entirely related to changes in interest rates.

The corporate securities category had gross unrealized losses greater than twelve months of $62.7 million as of December 31, 2014 (Predecessor Company). The aggregate decline in market value of these securities was deemed temporary due to positive factors supporting the recoverability of the respective investments. Positive factors considered include credit ratings, the financial health of the issuer, the continued access of the issuer to capital markets, and other pertinent information.

The equities category had a gross unrealized loss greater than twelve months of $14.0 million as of December 31, 2014 (Predecessor Company). The aggregate decline in market value of these securities was deemed temporary due to factors supporting the recoverability of the respective investments. Positive factors include credit ratings, the financial health of the issuer, the continued access of the issuer to the capital markets, and other pertinent information.

As of June 30, 2015, the Company had a total of 2,435 positions that were in an unrealized loss position, but the Company does not consider these unrealized loss positions to be other-than-temporary. This is based on the aggregate factors discussed previously and because the Company has the ability and intent to hold these investments until the fair values recover, and the Company does not intend to sell or expect to be required to sell the securities before recovering the Company’s amortized cost of the securities.

As of June 30, 2015 (Successor Company), the Company had securities in its available-for-sale portfolio which were rated below investment grade of $1.6 billion and had an amortized cost of $1.6 billion. In addition, included in the Company’s trading portfolio, the Company held $308.8 million of securities which were rated below investment grade. Approximately $403.3 million of the below investment grade securities were not publicly traded.

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

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015		For The Three		For The Six
	Months Ended			to			to		Months Ended		Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015		June 30, 2014		June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Fixed maturities	$	(1,040,143	)	$	(1,383,342	)	$	670,229	$	519,745	$	1,148,357
Equity securities	(9,048		)	(7,537		)	10,226		14,591		33,004

Variable Interest Entities

The Company holds certain investments in entities in which its ownership interests could possibly be considered variable interests under Topic 810 of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC” or “Codification”) (excluding debt and equity securities held as trading, available for sale, or held to maturity). The Company reviews the characteristics of each of these applicable entities and compares those characteristics to applicable criteria to determine whether the entity is a Variable Interest Entity (“VIE”). If the entity is determined to be a VIE, the Company then performs a detailed review to determine whether the interest would be considered a variable interest under the guidance. The Company then performs a qualitative review of all variable interests with the entity and determines whether the Company is the primary beneficiary. ASC 810 provides that an entity is the primary beneficiary of a VIE if the entity has 1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and 2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE.

Based on this analysis, the Company had an interest in one wholly owned subsidiary, Red Mountain, LLC (“Red Mountain”), that was determined to be a VIE as of June 30, 2015 (Successor Company) and December 31, 2014 (Predecessor Company). The activity most significant to Red Mountain is the issuance of a note in connection with a financing transaction involving Golden Gate V Vermont Captive Insurance Company (“Golden Gate V”) and the Company in which Golden Gate V issued non-recourse funding obligations to Red Mountain and Red Mountain issued the note to Golden Gate V. Credit enhancement on the Red Mountain Note is provided by an unrelated third party. For details of this transaction, see Note 9, Debt and Other Obligations. The Company had the power, via its 100% ownership through an affiliate, to direct the activities of the VIE, but did not have the obligation to absorb losses related to the primary risks or sources of variability to the VIE. The variability of loss would be borne primarily by the third party in its function as provider of credit enhancement on the Red Mountain Note. Accordingly, it was determined that the Company is not the primary beneficiary of the VIE. The Company’s risk of loss related to the VIE is limited to its investment of $10,000. Additionally, the Company has guaranteed the VIE’s payment obligation for the credit enhancement fee to the unrelated third party provider. As of June 30, 2015 (Successor Company), no payments have been made or required related to this guarantee.

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DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED

6 Months Ended

Jun. 30, 2015

DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED

DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED

7.DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED

Deferred policy acquisition costs

The balances and changes in DAC are as follows:

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015
	to			to			As of
	June 30, 2015			January 31, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Balance, beginning of period	$	—		$	2,647,980		$	2,721,687
Capitalization of commissions, sales, and issue expenses	130,346			22,513			288,592
Amortization	(7,750		)	1,117			(195,605		)
Change in unrealized investment gains and losses	4,073			(96,830		)	(166,694		)
Balance, end of period	$	126,669		$	2,574,780		$	2,647,980

Value of business acquired

The balances and changes in VOBA are as follows:

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015
	to			to			As of
	June 30, 2015			January 31, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Balance, beginning of period	$	1,276,886		$	646,590		$	848,528
Amortization	(60,241		)	(5,189		)	(61,704		)
Change in unrealized investment gains and losses	50,612			(79,418		)	(140,234		)
Balance, end of period	$	1,267,257		$	561,983		$	646,590

As of February 1, 2015, the existing deferred acquisition costs (“DAC”) and VOBA balance was written off in conjunction with the merger previously disclosed in Note 3, Dai-ichi Merger and in accordance with ASC Topic 805 — Business Combinations.

Concurrently, a VOBA asset was created representing the actuarial estimated present value of future cash flows from the Company’s insurance policies and investment contracts in-force on the date of the Merger.

The expected amortization of VOBA for the next five years is as follows:

	Expected
Years	Amortization
	(Dollars In Thousands)
2015	$	75,180
2016	141,346
2017	131,356
2018	116,146
2019	97,272

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COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	1 Months Ended
	Jul. 23, 2014 item	Jun. 30, 2015 USD ($)
Indemnification Agreement
Commitments and contingencies
Indemnification agreement with certain officers, maximum | $		$ 10.0
IRS proposed adjustment
Commitments and contingencies
Additional income tax cash payments if IRS prevails on every issue | $		$ 26.6
Merger Agreement
Commitments and contingencies
Number of lawsuits filed	4
Number of putative class action lawsuits filed and subsequently consolidated by the court	3

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EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended	12 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Defined Benefit Pension Plan
Change in projected benefit obligation:
Service cost		$ 2,973		$ 4,955
Interest cost		2,433		4,055
Unfunded Excess Benefits Plan
Change in projected benefit obligation:
Service cost		333		555
Interest cost		$ 408		680
Predecessor | Defined Benefit Pension Plan
EMPLOYEE BENEFIT PLANS
Accumulated benefit obligation, end of year	$ 262,290					$ 249,453
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	267,331			281,099	$ 219,152	219,152
Service cost	974		$ 2,227		4,454	9,411
Interest cost	1,002		2,587		5,174	10,493
Actuarial (gain) or loss	12,384					38,110
Benefits paid	(592)					(9,835)
Projected benefit obligation at end of period	281,099					267,331
Change in plan assets:
Fair value of plan assets at beginning of year	203,772			201,820	180,173	180,173
Actual return on plan assets	(3,525)					17,921
Employer contributions	2,165					15,513
Benefits paid	(592)					(9,835)
Fair value of plan assets at end of year	201,820					203,772
After reflecting FASB guidance
Funded status	(79,279)					(63,559)
Amounts recognized in the balance sheet:
Other liabilities	(79,279)					(63,559)
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss	96,965					80,430
Prior service cost/(credit)	(1,001)					(1,033)
Net transition asset	95,964					79,397
Predecessor | Unfunded Excess Benefits Plan
EMPLOYEE BENEFIT PLANS
Accumulated benefit obligation, end of year	49,251					47,368
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	49,575			51,243	39,679	39,679
Service cost	95		226		452	954
Interest cost	140		$ 406		$ 812	1,696
Actuarial (gain) or loss	1,555					9,153
Benefits paid	(122)					(1,907)
Projected benefit obligation at end of period	51,243					49,575
Change in plan assets:
Employer contributions	122					1,907
Benefits paid	(122)					(1,907)
After reflecting FASB guidance
Funded status	(51,243)					(49,575)
Amounts recognized in the balance sheet:
Other liabilities	(51,243)					(49,575)
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss	22,401					20,983
Prior service cost/(credit)	23					24
Net transition asset	22,424					21,007
Predecessor | Group life insurance plan
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	9,300			$ 9,800
Projected benefit obligation at end of period	$ 9,800					$ 9,300

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DEBT AND OTHER OBLIGATIONS (Details) $ in Thousands					1 Months Ended	5 Months Ended	6 Months Ended		12 Months Ended
	Feb. 03, 2015	Feb. 02, 2015 USD ($)	Feb. 01, 2015 USD ($)	Oct. 10, 2012 USD ($)	Jan. 31, 2015 USD ($)	Jun. 30, 2015 USD ($) item	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)	Jun. 25, 2014 USD ($)	Aug. 07, 2013 USD ($)	Dec. 10, 2010 USD ($)	Apr. 23, 2010 USD ($)
Debt and other obligations
Total debt						$ 1,662,739	$ 1,662,739
Total subordinated debt securities						452,424	452,424
Non-recourse funding obligations						656,299	656,299
Repurchase program borrowings						602,213	602,213
Collateral pledged for repurchase agreements						657,372	657,372
Overnight and Continuous
Debt and other obligations
Collateral pledged for repurchase agreements						549,591	549,591
Up to 30 days
Debt and other obligations
Collateral pledged for repurchase agreements						107,781	107,781
U.S. government-related securities.
Debt and other obligations
Collateral pledged for repurchase agreements						98,345	98,345
U.S. government-related securities. | Overnight and Continuous
Debt and other obligations
Collateral pledged for repurchase agreements						98,345	98,345
Corporate securities
Debt and other obligations
Collateral pledged for repurchase agreements						107,781	107,781
Corporate securities | Up to 30 days
Debt and other obligations
Collateral pledged for repurchase agreements						107,781	107,781
Loans
Debt and other obligations
Collateral pledged for repurchase agreements						451,246	451,246
Loans | Overnight and Continuous
Debt and other obligations
Collateral pledged for repurchase agreements						451,246	451,246
Golden Gate II
Debt and other obligations
Non-recourse funding obligations						118,274	118,274
Non-recourse funding obligations held by external parties						144,900	144,900
Non-recourse funding obligations held by affiliates						430,100	430,100
Payments under support agreement obligation						0	0
Amount of support agreement obligations collateralized						1,900	$ 1,900
Year-to-date weighted-average interest rate of non-recourse funding obligations (as a percent)							1.32%
Outstanding non-recourse funding obligations						575,000	$ 575,000
Golden Gate V and Red Mountain
Debt and other obligations
Term of transaction				20 years
Maximum financing capacity under transaction				$ 945,000
Payments under support agreement obligation						$ 0	$ 0
Golden Gate V
Debt and other obligations
Stated interest rate (as a percent)						6.25%	6.25%
Maximum financing capacity under transaction						$ 945,000	$ 945,000
Non-recourse funding obligations						535,474	$ 535,474
Year-to-date weighted-average interest rate of non-recourse funding obligations (as a percent)							5.12%
Outstanding non-recourse funding obligations						470,000	$ 470,000
Red Mountain
Debt and other obligations
Maximum financing capacity under transaction				945,000
Principal amount of note issued				$ 275,000		470,000	470,000
Future scheduled capital contributions						139,600
Golden Gate III
Debt and other obligations
Payments under support agreement obligation						0	0
Future scheduled capital contributions						122,500
Maximum borrowing capacity under letter of credit										$ 915,000	$ 710,000		$ 505,000
Maximum amount up to which LOC will be periodically increased										$ 935,000	$ 720,000		$ 610,000
Outstanding letters of credit (LOC)						$ 935,000	935,000
Letter of credit term						15 years
Number of installments in which future scheduled capital contributions payable | item						3
Golden Gate IV
Debt and other obligations
Payments under support agreement obligation						$ 0	0
Maximum borrowing capacity under letter of credit						770,000	770,000					$ 270,000
Maximum amount up to which LOC will be periodically increased						$ 790,000	790,000
Letter of credit term						12 years
MONY
Debt and other obligations
Non-recourse funding obligations						$ 2,551	$ 2,551
Year-to-date weighted-average interest rate of non-recourse funding obligations (as a percent)							6.19%
Predecessor
Debt and other obligations
Total debt									$ 1,300,000
Total subordinated debt securities									540,593
Non-recourse funding obligations									582,404
Repurchase program borrowings									50,000
Outstanding nonrecourse funding obligations repurchased at discount								$ 18,300
Gain from repurchase of outstanding nonrecourse funding obligations								$ 4,600
Repurchase Program Borrowings
Debt and other obligations
Fair value of securities pledged under the repurchase program						657,400	$ 657,400
Repurchase program borrowings						$ 602,200	602,200
Average borrowing rate (as a percent)						0.21%
Maximum balance outstanding						$ 646,700	646,700
Average daily balance						$ 507,200	$ 507,200
Average borrowing rate (as a percent)						0.17%
Repurchase Program Borrowings | Maximum
Debt and other obligations
Term of debt							90 days
Repurchase Program Borrowings | Predecessor
Debt and other obligations
Maximum balance outstanding					$ 175,000				633,700
Average daily balance					$ 77,400				$ 470,400
Average borrowing rate (as a percent)					0.16%				0.11%
Outstanding balance									$ 50,000
Credit Facility
Debt and other obligations
Total debt						$ 545,000	$ 545,000
Line of credit, maximum borrowing capacity			$ 750,000
Line of credit, maximum borrowing capacity to be granted upon entity's request			$ 1,000,000
Base of floating rate interest rate payments			LIBOR
Facility fee percentage			0.175%
Credit Facility | Federal Funds Rate
Debt and other obligations
Base of floating rate interest rate payments			Federal Funds rate
Interest rate added to the base rate (as a percent)			0.50%
Credit Facility | Prime Rate
Debt and other obligations
Base of floating rate interest rate payments			prime rate
Credit Facility | LIBOR One-Month Rate
Debt and other obligations
Base of floating rate interest rate payments			one-month LIBOR
Interest rate added to the base rate (as a percent)			1.00%
Credit Facility | Predecessor
Debt and other obligations
Total debt									450,000
Line of credit, amount outstanding									$ 450,000
Credit Facility | Predecessor | LIBOR
Debt and other obligations
Base of floating rate interest rate payments									LIBOR
Interest rate added to the base rate (as a percent)									1.20%
Letter of Credit | PLICO
Debt and other obligations
Previously executed Letter of Credit no longer issued and outstanding						55,000	55,000
Letter of Credit | Predecessor | PLICO
Debt and other obligations
Outstanding letters of credit (LOC)									$ 55,000
2015 Credit Facility
Debt and other obligations
Line of credit, maximum borrowing capacity		$ 1,000,000
Line of credit, maximum borrowing capacity to be granted upon entity's request		$ 1,250,000
Base of floating rate interest rate payments		LIBOR
Facility fee percentage	0.125%	0.15%
Line of credit, amount outstanding						$ 545,000	$ 545,000
2015 Credit Facility | LIBOR
Debt and other obligations
Base of floating rate interest rate payments						LIBOR
Interest rate added to the base rate (as a percent)						1.00%
2015 Credit Facility | Federal Funds Rate
Debt and other obligations
Base of floating rate interest rate payments		Federal Funds rate
Interest rate added to the base rate (as a percent)		0.50%
2015 Credit Facility | Prime Rate
Debt and other obligations
Base of floating rate interest rate payments		Prime rate
2015 Credit Facility | LIBOR One-Month Rate
Debt and other obligations
Base of floating rate interest rate payments		one-month LIBOR
Interest rate added to the base rate (as a percent)		1.00%
6.40% Senior Notes (2007), due 2018
Debt and other obligations
Stated interest rate (as a percent)						6.40%	6.40%
Total debt						$ 165,625	$ 165,625
6.40% Senior Notes (2007), due 2018 | Predecessor
Debt and other obligations
Total debt									150,000
7.375% Senior Notes (2009), due 2019
Debt and other obligations
Stated interest rate (as a percent)						7.375%	7.375%
Total debt						$ 482,183	$ 482,183
7.375% Senior Notes (2009), due 2019 | Predecessor
Debt and other obligations
Total debt									400,000
8.45% Senior Notes (2009), due 2039
Debt and other obligations
Stated interest rate (as a percent)						8.45%	8.45%
Total debt						$ 469,931	$ 469,931
8.45% Senior Notes (2009), due 2039 | Predecessor
Debt and other obligations
Total debt									$ 300,000
6.125% Subordinated Debentures (2004), due 2034, callable 2009
Debt and other obligations
Stated interest rate (as a percent)						6.125%	6.125%
Repayment of debt						$ 103,100
6.125% Subordinated Debentures (2004), due 2034, callable 2009 | Predecessor
Debt and other obligations
Stated interest rate (as a percent)									6.125%
Total subordinated debt securities									$ 103,093
6.25% Subordinated Debentures (2012) due 2042, callable 2017
Debt and other obligations
Stated interest rate (as a percent)						6.25%	6.25%
Total subordinated debt securities						$ 298,659	$ 298,659
6.25% Subordinated Debentures (2012) due 2042, callable 2017 | Predecessor
Debt and other obligations
Total subordinated debt securities									287,500
6.00% Subordinated Debentures (2012) due 2042, callable 2017
Debt and other obligations
Stated interest rate (as a percent)						6.00%	6.00%
Total subordinated debt securities						$ 153,765	$ 153,765
6.00% Subordinated Debentures (2012) due 2042, callable 2017 | Predecessor
Debt and other obligations
Total subordinated debt securities									$ 150,000
Non-recourse Funding Obligations Series | Golden Gate
Debt and other obligations
Number of series of non-recourse funding obligations | item						3
Non-recourse funding obligations						$ 800,000	$ 800,000
Series A1 Non-recourse Funding Obligation | Golden Gate
Debt and other obligations
Stated interest rate (as a percent)						7.375%	7.375%
Non-recourse funding obligations						$ 400,000	$ 400,000
Series A2 Non-recourse Funding Obligation | Golden Gate
Debt and other obligations
Stated interest rate (as a percent)						8.00%	8.00%
Non-recourse funding obligations						$ 100,000	$ 100,000
Series A3 Non-recourse Funding Obligation | Golden Gate
Debt and other obligations
Stated interest rate (as a percent)						8.45%	8.45%
Non-recourse funding obligations						$ 300,000	$ 300,000

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MORTGAGE LOANS (Tables)

6 Months Ended

Jun. 30, 2015

MORTGAGE LOANS

Schedule of changes in the allowance for mortgage loan credit losses

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015
	to			to			As of
	June 30, 2015			January 31, 2015			December 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Beginning balance	$	—		$	5,720		$	3,130
Charge offs	—			(861		)	(675		)
Recoveries	(638		)	(2,359		)	(2,600		)
Provision	1,173			—			5,865
Ending balance	$	535		$	2,500		$	5,720

Schedule of an analysis of the delinquent loans

					Greater
Successor Company	30-59 Days		60-89 Days		than 90 Days		Total
As of June 30, 2015	Delinquent		Delinquent		Delinquent		Delinquent
	(Dollars In Thousands)
Commercial mortgage loans	$	8,045	$	2,370	$	296	$	10,711
Number of delinquent commercial mortgage loans	5		2		1		8
Predecessor Company
As of December 31, 2014
Commercial mortgage loans	$	8,972	$	—	$	1,484	$	10,456
Number of delinquent commercial mortgage loans	4		—		1		5

Schedule of information regarding impaired loans

			Unpaid				Average		Interest		Cash Basis
Successor Company	Recorded		Principal		Related		Recorded		Income		Interest
As of June 30, 2015	Investment		Balance		Allowance		Investment		Recognized		Income
	(Dollars In Thousands)
Commercial mortgage loans:
With no related allowance recorded	$	9,022	$	12,243	$	—	$	1,504	$	199	$	168
With an allowance recorded	1,500		2,035		535		1,500		31		31
Predecessor Company
As of December 31, 2014
Commercial mortgage loans:
With no related allowance recorded	$	—	$	—	$	—	$	—	$	—	$	—
With an allowance recorded	19,632		20,603		5,720		3,272		1,224		1,280

Schedule of mortgage loans that were modified in a troubled debt restructuring

		Pre-Modification		Post-Modification
		Outstanding		Outstanding
Successor Company	Number of	Recorded		Recorded
As of June 30, 2015	Contracts	Investment		Investment
		(Dollars In Thousands)
Troubled debt restructuring:
Commercial mortgage loans	1	$	2,035	$	1,500
Predecessor Company
As of December 31, 2014
Troubled debt restructuring:
Commercial mortgage loans	6	$	28,648	$	19,593

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INVESTMENT OPERATIONS (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net realized investment gains (losses) for all other investments
Fixed maturities		$ 3,339		$ 3,712
Equity securities		21		21
Impairments on fixed maturity securities		(5,734)		(5,734)
Modco trading portfolio		(108,741)		(141,901)
Other investments		3,044		775
Total realized gains (losses) - investments		(108,071)		(143,127)
Gross realized gains on investments available-for-sale (fixed maturities, equity securities, and short-term investments)		5,400		6,900
Gross realized losses		7,800		8,900
Impairment losses on investments available-for-sale		5,700		5,700
Fair value (proceeds) of securities in an unrealized gain position sold		432,200		715,000
Gain realized on the sale of securities in an unrealized gain position		5,400		6,900
Fair value (proceeds) of securities in an unrealized loss position sold		28,600		49,300
Loss realized on the sale of securities in an unrealized loss position		$ 2,100		$ 3,200
Predecessor
Net realized investment gains (losses) for all other investments
Fixed maturities	$ 6,891		$ 20,198		$ 27,568
Impairments on fixed maturity securities	(481)		(1,460)		(3,051)
Modco trading portfolio	73,062		60,989		127,292
Other investments	1,200		(1,039)		(2,598)
Total realized gains (losses) - investments	80,672		78,688		149,211
Gross realized gains on investments available-for-sale (fixed maturities, equity securities, and short-term investments)	6,900		20,400		28,100
Gross realized losses	500		1,600		3,400
Impairment losses on investments available-for-sale	400		1,400		2,900
Fair value (proceeds) of securities in an unrealized gain position sold	172,600		306,300		571,000
Gain realized on the sale of securities in an unrealized gain position	6,900		20,400		28,100
Fair value (proceeds) of securities in an unrealized loss position sold	$ 400		1,600		4,400
Loss realized on the sale of securities in an unrealized loss position			$ 200		$ 500

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

6 Months Ended

Jun. 30, 2015

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12.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, 2015 (Successor Company), January 31, 2015 (Predecessor Company) and December 31, 2014 (Predecessor Company).

Changes in Accumulated Other Comprehensive Income (Loss) by Component

							Total
							Accumulated
	Unrealized			Accumulated			Other
	Gains and Losses			Gain and Loss			Comprehensive
Successor Company	on Investments(2)			Derivatives			Income (Loss)
	(Dollars In Thousands, Net of Tax)
Beginning Balance, February 1, 2015	$	—		$	—		$	—
Other comprehensive income (loss) before reclassifications	(894,507		)	(86		)	(894,593		)
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings	(4,566		)	—			(4,566		)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	1,301			86			1,387
Net current-period other comprehensive income (loss)	(897,772		)	—			(897,772		)
Ending Balance, June 30, 2015	$	(897,772	)	$	—		$	(897,772	)

(1) See Reclassification table below for details.

(2)As of June 30, 2015 net unrealized losses reported in AOCI were offset by $493.0 million due to the impact those net unrealized losses would have had on certain of the Company’s insurance assets and liabilities if the net unrealized losses had been recognized in net income.

Changes in Accumulated Other Comprehensive Income (Loss) by Component

										Total
										Accumulated
	Unrealized			Accumulated			Minimum			Other
	Gains and Losses			Gain and Loss			Pension Liability			Comprehensive
Predecessor Company	on Investments(2)			Derivatives			Adjustment			Income (Loss)
	(Dollars In Thousands, Net of Tax)
Beginning Balance, December 31, 2014	$	1,484,169		$	(82	)	$	(66,011	)	$	1,418,076
Other comprehensive income (loss) before reclassifications	482,370			9			(12,527		)	469,852
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings	(243		)	—			—			(243		)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	(4,166		)	23			502			(3,641		)
Net current-period other comprehensive income (loss)	477,961			32			(12,025		)	465,968
Ending Balance, January 31, 2015	$	1,962,130		$	(50	)	$	(78,036	)	$	1,884,044

(1) See Reclassification table below for details.

(2)As of January 31, 2015 and December 31, 2014, net unrealized losses reported in AOCI were offset by $(492.6) million and $(504.4) million, respectively, due to the impact those net unrealized losses would have had on certain of the Company’s insurance assets and liabilities if the net unrealized losses had been recognized in net income.

Changes in Accumulated Other Comprehensive Income (Loss) by Component

										Total
										Accumulated
	Unrealized			Accumulated			Minimum			Other
	Gains and Losses			Gain and Loss			Pension Liability			Comprehensive
Predecessor Company	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	986,958			(2		)	(27,395		)	959,561
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings	3,498			—			—			3,498
Amounts reclassified from accumulated other comprehensive income (loss)(1)	(45,290		)	1,155			5,086			(39,049		)
Net current-period other comprehensive income (loss)	945,166			1,153			(22,309		)	924,010
Ending Balance, December 31, 2014	$	1,484,169		$	(82	)	$	(66,011	)	$	1,418,076

(1) See Reclassification table below for details.

(2)As of December 31, 2014 and 2013, net unrealized losses reported in AOCI were offset by $(504.4) million and $(189.8) million, respectively, due to the impact those net unrealized losses would have had on certain of the Company’s insurance assets and liabilities if the net unrealized losses had been recognized in net income.

The following tables summarize the reclassifications amounts out of AOCI for the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the three and six months ended June 30, 2014 (Predecessor Company).

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
Successor Company	Other Comprehensive			Affected Line Item in the
For The Three Months Ended June 30, 2015	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(41	)	Benefits and settlement expenses, net of reinsurance ceded
	(41		)	Total before tax
	14			Tax (expense) or benefit
	$	(27	)	Net of tax
Unrealized gains and losses on available-for-sale securities
Net investment gains (losses)	$	3,360		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(5,734		)	Net impairment losses recognized in earnings
	(2,374		)	Total before tax
	831			Tax (expense) or benefit
	$	(1,543	)	Net of tax

(1) See Note 16, Derivative Financial Instruments for additional information.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
Successor Company	Other Comprehensive			Affected Line Item in the
February 1, 2015 to June 30, 2015	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(131	)	Benefits and settlement expenses, net of reinsurance ceded
	(131		)	Total before tax
	45			Tax (expense) or benefit
	$	(86	)	Net of tax
Unrealized gains and losses on available-for-sale securities
Net investment gains (losses)	$	3,733		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(5,734		)	Net impairment losses recognized in earnings
	(2,001		)	Total before tax
	700			Tax (expense) or benefit
	$	(1,301	)	Net of tax

(1) See Note 16, Derivative Financial Instruments for additional information.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
Predecessor Company	Other Comprehensive			Affected Line Item in the
January 1, 2015 to January 31, 2015	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(36	)	Benefits and settlement expenses, net of reinsurance ceded
	(36		)	Total before tax
	13			Tax (expense) or benefit
	$	(23	)	Net of tax
Unrealized gains and losses on available-for-sale securities
Net investment gains (losses)	$	6,891		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(481		)	Net impairment losses recognized in earnings
	6,410			Total before tax
	(2,244		)	Tax (expense) or benefit
	$	4,166		Net of tax
Postretirement benefits liability adjustment
Amortization of net actuarial gain/(loss)	$	(808	)	Other operating expenses
Amortization of prior service credit/(cost)	31			Other operating expenses
Amortization of transition asset/(obligation)	5			Other operating expenses
	(772		)	Total before tax
	270			Tax (expense) or benefit
	$	(502	)	Net of tax

(1) See Note 16, Derivative Financial Instruments for additional information.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
Predecessor Company	Other Comprehensive			Affected Line Item in the
For The Three Months Ended June 30, 2014	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
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 16, Derivative Financial Instruments for additional information.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
Predecessor Company	Other Comprehensive			Affected Line Item in the
For The Six Months Ended June 30, 2014	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
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 16, Derivative Financial Instruments for additional information.

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OFFSETTING OF ASSETS AND LIABILITIES

6 Months Ended

Jun. 30, 2015

OFFSETTING OF ASSETS AND LIABILITIES

OFFSETTING OF ASSETS AND LIABILITIES

17.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 9, 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 as of June 30, 2015 (Successor 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	$	225,011	$	—	$	225,011	$	53,905	$	77,148	$	93,958
Total derivatives, subject to a master netting arrangement or similar arrangement	225,011		—		225,011		53,905		77,148		93,958
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	2,321		—		2,321		—		—		2,321
Embedded derivative - GMWB	167,275		—		167,275		—		—		167,275
Other	340		—		340		—		—		340
Total derivatives, not subject to a master netting arrangement or similar arrangement	169,936		—		169,936		—		—		169,936
Total derivatives	394,947		—		394,947		53,905		77,148		263,894
Total Assets	$	394,947	$	—	$	394,947	$	53,905	$	77,148	$	263,894

					Net Amounts
			Gross		of Liabilities		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	$	90,805	$	—	$	90,805	$	53,905	$	36,900	$	—
Total derivatives, subject to a master netting arrangement or similar arrangement	90,805		—		90,805		53,905		36,900		—
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	223,342		—		223,342		—		—		223,342
Embedded derivative - GMWB	107,393		—		107,393		—		—		107,393
Embedded derivative - FIA	85,129		—		85,129		—		—		85,129
Embedded derivative - IUL	11,902		—		11,902		—		—		11,902
Total derivatives, not subject to a master netting arrangement or similar arrangement	427,766		—		427,766		—		—		427,766
Total derivatives	518,571		—		518,571		53,905		36,900		427,766
Repurchase agreements(1)	602,213		—		602,213		—		—		602,213
Total Liabilities	$	1,120,784	$	—	$	1,120,784	$	53,905	$	36,900	$	1,029,979

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

The tables below present the derivative instruments by assets and liabilities for the Company as of December 31, 2014 (Predecessor 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	$	225,716	$	—	$	225,716	$	53,612	$	73,935	$	98,169
Total derivatives, subject to a master netting arrangement or similar arrangement	225,716		—		225,716		53,612		73,935		98,169
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	1,051		—		1,051		—		—		1,051
Embedded derivative - GMWB	66,843		—		66,843		—		—		66,843
Other	360		—		360		—		—		360
Total derivatives, not subject to a master netting arrangement or similar arrangement	68,254		—		68,254		—		—		68,254
Total derivatives	293,970		—		293,970		53,612		73,935		166,423
Total Assets	$	293,970	$	—	$	293,970	$	53,612	$	73,935	$	166,423

					Net Amounts
			Gross		of Liabilities		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	$	65,887	$	—	$	65,887	$	53,612	$	12,258	$	17
Total derivatives, subject to a master netting arrangement or similar arrangement	65,887		—		65,887		53,612		12,258		17
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	311,727		—		311,727		—		—		311,727
Embedded derivative - GMWB	311,969		—		311,969		—		—		311,969
Embedded derivative - FIA	124,465		—		124,465		—		—		124,465
Embedded derivative - IUL	6,691		—		6,691		—		—		6,691
Total derivatives, not subject to a master netting arrangement or similar arrangement	754,852		—		754,852		—		—		754,852
Total derivatives	820,739		—		820,739		53,612		12,258		754,869
Repurchase agreements(1)	50,000		—		50,000		—		—		50,000
Total Liabilities	$	870,739	$	—	$	870,739	$	53,612	$	12,258	$	804,869

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

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DAI-ICHI MERGER (Details 2) - Protective Life Corporation - Dai-ichi Life - USD ($) $ in Thousands	Feb. 01, 2015	Jun. 30, 2015
Intangible assets recognized
Total intangible assets subject to amortization	$ 651,000
Total intangible assets	683,000
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2015		$ 20,657
2016		41,313
2017		41,313
2018		41,313
2019		$ 41,313
Acquisition related costs	28,800
Share based compensation, benefits payable	138,200
Share based compensation expense	25,400
Insurance licenses
Intangible assets recognized
Total intangible assets indefinite	32,000
Distribution relationships
Intangible assets recognized
Total intangible assets subject to amortization	$ 405,000
Distribution relationships | Minimum
Intangible assets recognized
Estimated useful life	14 years
Distribution relationships | Maximum
Intangible assets recognized
Estimated useful life	22 years
Trade names
Intangible assets recognized
Total intangible assets subject to amortization	$ 103,000
Trade names | Minimum
Intangible assets recognized
Estimated useful life	13 years
Trade names | Maximum
Intangible assets recognized
Estimated useful life	17 years
Technology
Intangible assets recognized
Total intangible assets subject to amortization	$ 143,000
Technology | Minimum
Intangible assets recognized
Estimated useful life	7 years
Technology | Maximum
Intangible assets recognized
Estimated useful life	14 years

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2015

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, 2015 (Successor Company):

	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities - available-for-sale
Residential mortgage-backed securities	$	—	$	1,576,823	$	3	$	1,576,826
Commercial mortgage-backed securities	—		1,203,156		—		1,203,156
Other asset-backed securities	—		208,586		590,885		799,471
U.S. government-related securities	1,091,530		510,000		—		1,601,530
State, municipalities, and political subdivisions	—		1,585,068		—		1,585,068
Other government-related securities	—		18,782		—		18,782
Corporate securities	82		25,057,864		1,111,431		26,169,377
Preferred stock	61,667		—		—		61,667
Total fixed maturity securities - available-for-sale	1,153,279		30,160,279		1,702,319		33,015,877
Fixed maturity securities - trading
Residential mortgage-backed securities	—		298,138		—		298,138
Commercial mortgage-backed securities	—		146,314		—		146,314
Other asset-backed securities	—		108,837		160,594		269,431
U.S. government-related securities	236,424		4,840		—		241,264
State, municipalities, and political subdivisions	—		307,411		—		307,411
Other government-related securities	—		58,090		—		58,090
Corporate securities	—		1,399,192		19,316		1,418,508
Preferred stock	7,576		—		—		7,576
Total fixed maturity securities - trading	244,000		2,322,822		179,910		2,746,732
Total fixed maturity securities	1,397,279		32,483,101		1,882,229		35,762,609
Equity securities	641,429		11,308		69,720		722,457
Other long-term investments(1)	109,761		115,590		169,596		394,947
Short-term investments	191,745		12,922		—		204,667
Total investments	2,340,214		32,622,921		2,121,545		37,084,680
Cash	568,776		—		—		568,776
Other assets	17,835		—		—		17,835
Assets related to separate accounts
Variable annuity	13,313,000		—		—		13,313,000
Variable universal life	859,114		—		—		859,114
Total assets measured at fair value on a recurring basis	$	17,098,939	$	32,622,921	$	2,121,545	$	51,843,405
Liabilities:
Annuity account balances(2)	$	—	$	—	$	95,178	$	95,178
Other liabilities (1)	71,454		19,352		427,765		518,571
Total liabilities measured at fair value on a recurring basis	$	71,454	$	19,352	$	522,943	$	613,749

(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, 2014 (Predecessor Company):

	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities - available-for-sale
Residential mortgage-backed securities	$	—	$	1,418,255	$	3	$	1,418,258
Commercial mortgage-backed securities	—		1,177,252		—		1,177,252
Other asset-backed securities	—		275,415		563,961		839,376
U.S. government-related securities	1,165,188		263,707		—		1,428,895
State, municipalities, and political subdivisions	—		1,684,014		3,675		1,687,689
Other government-related securities	—		20,172		—		20,172
Corporate securities	132		26,059,712		1,325,683		27,385,527
Total fixed maturity securities - available-for-sale	1,165,320		30,898,527		1,893,322		33,957,169
Fixed maturity securities - trading
Residential mortgage-backed securities	—		288,114		—		288,114
Commercial mortgage-backed securities	—		151,111		—		151,111
Other asset-backed securities	—		105,118		169,461		274,579
U.S. government-related securities	245,563		4,898		—		250,461
State, municipalities, and political subdivisions	—		325,446		—		325,446
Other government-related securities	—		57,032		—		57,032
Corporate securities	—		1,447,333		24,744		1,472,077
Total fixed maturity securities - trading	245,563		2,379,052		194,205		2,818,820
Total fixed maturity securities	1,410,883		33,277,579		2,087,527		36,775,989
Equity securities	630,910		99,266		73,054		803,230
Other long-term investments (1)	119,997		106,079		67,894		293,970
Short-term investments	244,100		6,545		—		250,645
Total investments	2,405,890		33,489,469		2,228,475		38,123,834
Cash	379,411		—		—		379,411
Other assets	11,669		—		—		11,669
Assets related to separate accounts
Variable annuity	13,157,429		—		—		13,157,429
Variable universal life	834,940		—		—		834,940
Total assets measured at fair value on a recurring basis	$	16,789,339	$	33,489,469	$	2,228,475	$	52,507,283
Liabilities:
Annuity account balances (2)	$	—	$	—	$	97,825	$	97,825
Other liabilities (1)	62,146		3,741		754,852		820,739
Total liabilities measured at fair value on a recurring basis	$	62,146	$	3,741	$	852,677	$	918,564

(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

	Successor
	Company
	Fair Value
	As of		Valuation	Unobservable	Range
	June 30, 2015		Technique	Input	(Weighted Average)
	(Dollars In Thousands)
Assets:
Other asset-backed securities	$	590,885	Discounted cash flow	Liquidity premium	0.55% - 1.50% (1.03%)
				Paydown rate	9.95% - 14.69% (12.57%)
Corporate securities	1,084,954		Discounted cash flow	Spread over	0.58% - 12.00% (2.25%)
				Treasury
Embedded derivatives - GMWB(1)	59,888		Actuarial cash flow model	Mortality	1994 MGDB table with
					company experience
				Lapse	0.29% - 17%, depending on
					product/duration/funded
					status of guarantee
				Utilization	99%. 10% of policies have a
					one-time over-utilization of
					400%
				Nonperformance risk	0.16% - 1.04%
Liabilities:
Annuity account balances(2)	$	95,178	Actuarial cash flow model	Asset earned rate	3.71% - 5.77%
				Expenses	$80 per policy
				Withdrawal rate	2.20%
				Mortality	1994 MGDB table with
					company experience
				Lapse	2.2% - 33.0%, depending
					on duration/surrender
					charge period
				Return on assets	1.50% - 1.85% depending on
					duration/surrender
					charge period
				Nonperformance risk	0.16% - 1.04%
Embedded derivative - FIA	85,129		Actuarial cash flow model	Expenses	$80 per policy
				Withdrawal rate	1.1% - 4.5% depending on
					duration and tax qualification
				Mortality	1994 MGDB table with
					company experience
				Lapse	2.5% - 40.0%, depending
					on duration/surrender
					charge period
				Nonperformance risk	0.16% - 1.04%
Embedded derivative - IUL	11,902		Actuarial cash flow model	Mortality	44% - 137% of 2014
					VBT Primary Tables
				Lapse	0.5% - 10.0%, depending on
					duration/distribution channel
					and smoking class
				Nonperformance risk	0.16% - 1.04%

(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.

	Predecessor
	Company
	Fair Value
	As of		Valuation	Unobservable	Range
	December 31, 2014		Technique	Input	(Weighted Average)
	(Dollars In Thousands)
Assets:
Other asset-backed securities	$	563,752	Discounted cash flow	Liquidity premium	0.39% - 1.49% (0.69%)
				Paydown rate	9.70% - 15.80% (12.08%)
Corporate securities	1,282,864		Discounted cash flow	Spread over	0.33% - 7.50% (2.19%)
				treasury
Liabilities:
Embedded derivatives - GMWB(1)	$	245,090	Actuarial cash flow model	Mortality	44.5% to 100% of 1994
					MGDB table
				Lapse	0.25% - 17%, depending on
					product/duration/funded
					status of guarantee
				Utilization	97% - 101%
				Nonperformance risk	0.12% - 0.96%
Annuity account balances(2)	97,825		Actuarial cash flow model	Asset earned rate	3.86% - 5.92%
				Expenses	$88 - $102 per policy
				Withdrawal rate	2.20%
				Mortality	49% to 80% of 1994
					MGDB table
				Lapse	2.2% - 33.0%, depending
					on duration/surrender
					charge period
				Return on assets	1.50% - 1.85% depending on
					surrender charge period
				Nonperformance risk	0.12% - 0.96%
Embedded derivative - FIA	124,465		Actuarial cash flow model	Expenses	$83 - $97 per policy
				Withdrawal rate	1.1% - 4.5% depending on
					duration and tax qualification
				Mortality	49% to 80% of 1994
					MGDB table
				Lapse	2.5% - 40.0%, depending
					on duration/surrender
					charge period
				Nonperformance risk	0.12% - 0.96%
Embedded derivative - IUL	6,691		Actuarial cash flow model	Mortality	37% - 74% of 2008
					VBT Primary Tables
				Lapse	0.5% - 10.0%, depending
					on duration/distribution
					channel and smoking class
				Nonperformance risk	0.12% - 0.96%

(1)The fair value for the GMWB embedded derivative is presented as a net liability.  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, 2015 (Successor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total
																														Gains (losses)
																														included in
			Total				Total																							Earnings
			Realized and Unrealized				Realized and Unrealized																							related to
			Gains				Losses																							Instruments
					Included in					Included in																				still held at
					Other					Other												Transfers								the
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of						Ending		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	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	600,132		—		165		(92		)	(9,323		)	—		(87		)	—		—		—			90			590,885		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	1,283,142		3,656		4,001		(687		)	(24,247		)	89,929		(219,148		)	—		—		(21,803		)	(3,412		)	1,111,431		—
Total fixed maturity securities - available-for-sale	1,883,277		3,656		4,166		(779		)	(33,570		)	89,929		(219,235		)	—		—		(21,803		)	(3,322		)	1,702,319		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	170,500		589		—		(5,173		)	—			—		(5,468		)	—		—		—			146			160,594		(4,587		)
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	19,614		140		—		(233		)	—			—		(161		)	—		—		—			(44		)	19,316		(93		)
Total fixed maturity securities - trading	190,114		729		—		(5,406		)	—			—		(5,629		)	—		—		—			102			179,910		(4,680		)
Total fixed maturity securities	2,073,391		4,385		4,166		(6,185		)	(33,570		)	89,929		(224,864		)	—		—		(21,803		)	(3,220		)	1,882,229		(4,680		)
Equity securities	69,951		—		—		—			—			—		(231		)	—		—		—			—			69,720		—
Other long-term investments(1)	122,894		46,702		—		—			—			—		—			—		—		—			—			169,596		46,702
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	2,266,236		51,087		4,166		(6,185		)	(33,570		)	89,929		(225,095		)	—		—		(21,803		)	(3,220		)	2,121,545		42,022
Total assets measured at fair value on a recurring basis	$	2,266,236	$	51,087	$	4,166	$	(6,185	)	$	(33,570	)	$	89,929	$	(225,095	)	$	—	$	—	$	(21,803	)	$	(3,220	)	$	2,121,545	$	42,022
Liabilities:
Annuity account balances(2)	$	97,108	$	—	$	—	$	(911	)	$	—		$	—	$	—		$	72	$	2,913	$	—		$	—		$	95,178	$	—
Other liabilities(1)	627,515		224,194		—		(24,444		)	—			—		—			—		—		—			—			427,765		199,750
Total liabilities measured at fair value on a recurring basis	$	724,623	$	224,194	$	—	$	(25,355	)	$	—		$	—	$	—		$	72	$	2,913	$	—		$	—		$	522,943	$	199,750

(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 period of February 1, 2015 to June 30, 2015 (Successor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total
																														Gains (losses)
																														included in
			Total				Total																							Earnings
			Realized and Unrealized				Realized and Unrealized																							related to
			Gains				Losses																							Instruments
					Included in					Included in																				still held at
					Other					Other												Transfers								the
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of						Ending		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	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	603,646		—		165		(92		)	(12,891		)	—		(127		)	—		—		—			184			590,885		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		(3,675		)	—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	1,307,259		4,291		15,619		(687		)	(24,247		)	111,929		(254,935		)	—		—		(41,853		)	(5,945		)	1,111,431		—
Total fixed maturity securities - available-for-sale	1,914,583		4,291		15,784		(779		)	(37,138		)	111,929		(258,737		)	—		—		(41,853		)	(5,761		)	1,702,319		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	169,473		3,949		—		(5,173		)	—			—		(7,876		)	—		—		—			221			160,594		(5,829		)
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	25,130		174		—		(299		)	—			—		(5,584		)	—		—		—			(105		)	19,316		(1,180		)
Total fixed maturity securities - trading	194,603		4,123		—		(5,472		)	—			—		(13,460		)	—		—		—			116			179,910		(7,009		)
Total fixed maturity securities	2,109,186		8,414		15,784		(6,251		)	(37,138		)	111,929		(272,197		)	—		—		(41,853		)	(5,645		)	1,882,229		(7,009		)
Equity securities	73,044		—		—		—			—			—		(231		)	—		—		—			(3,093		)	69,720		—
Other long-term investments(1)	93,274		76,342		—		(20		)	—			—		—			—		—		—			—			169,596		76,322
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	2,275,504		84,756		15,784		(6,271		)	(37,138		)	111,929		(272,428		)	—		—		(41,853		)	(8,738		)	2,121,545		69,313
Total assets measured at fair value on a recurring basis	$	2,275,504	$	84,756	$	15,784	$	(6,271	)	$	(37,138	)	$	111,929	$	(272,428	)	$	—	$	—	$	(41,853	)	$	(8,738	)	$	2,121,545	$	69,313
Liabilities:
Annuity account balances(2)	$	98,279	$	—	$	—	$	(1,544	)	$	—		$	—	$	—		$	86	$	4,731	$	—		$	—		$	95,178	$	—
Other liabilities(1)	742,130		358,811		—		(44,446		)	—			—		—			—		—		—			—			427,765		314,365
Total liabilities measured at fair value on a recurring basis	$	840,409	$	358,811	$	—	$	(45,990	)	$	—		$	—	$	—		$	86	$	4,731	$	—		$	—		$	522,943	$	314,365

(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 period of January 1, 2015 to January 31, 2015 (Predecessor Company), for which the Company has used significant unobservable inputs (Level 3):

																													Total
																													Gains (losses)
																													included in
			Total				Total																						Earnings
			Realized and Unrealized				Realized and Unrealized																						related to
			Gains				Losses																						Instruments
					Included in					Included in																			still held at
					Other					Other												Transfers							the
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of					Ending		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	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—	$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	563,961		—		—		—			(3,867		)	—		(32		)	—		—		43,205		379			603,646		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		—			—		—		—		—			3,675		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Corporate securities	1,325,683		—		12,282		—			(23,029		)	—		(7,062		)	—		—		—		(615		)	1,307,259		—
Total fixed maturity securities - available-for-sale	1,893,322		—		12,282		—			(26,896		)	—		(7,094		)	—		—		43,205		(236		)	1,914,583		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	169,461		586		—		(139		)	—			—		(472		)	—		—		—		37			169,473		447
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—		—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Corporate securities	24,744		602		—		(196		)	—			—		(20		)	—		—		—		—			25,130		406
Total fixed maturity securities - trading	194,205		1,188		—		(335		)	—			—		(492		)	—		—		—		37			194,603		853
Total fixed maturity securities	2,087,527		1,188		12,282		(335		)	(26,896		)	—		(7,586		)	—		—		43,205		(199		)	2,109,186		853
Equity securities	73,054		—		—		—			(10		)	—		—			—		—		—		—			73,044		—
Other long-term investments(1)	67,894		753		—		(25,902		)	—			—		—			—		—		—		—			42,745		(25,149		)
Short-term investments	—		—		—		—			—			—		—			—		—		—		—			—		—
Total investments	2,228,475		1,941		12,282		(26,237		)	(26,906		)	—		(7,586		)	—		—		43,205		(199		)	2,224,975		(24,296		)
Total assets measured at fair value on a recurring basis	$	2,228,475	$	1,941	$	12,282	$	(26,237	)	$	(26,906	)	$	—	$	(7,586	)	$	—	$	—	$	43,205	$	(199	)	$	2,224,975	$	(24,296	)
Liabilities:
Annuity account balances(2)	$	97,825	$	—	$	—	$	(536	)	$	—		$	—	$	—		$	7	$	419	$	—	$	—		$	97,949	$	—
Other liabilities(1)	754,852		61		—		(253,773		)	—			—		—			—		—		—		—			1,008,564		(253,712		)
Total liabilities measured at fair value on a recurring basis	$	852,677	$	61	$	—	$	(254,309	)	$	—		$	—	$	—		$	7	$	419	$	—	$	—		$	1,106,513	$	(253,712	)

(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, 2014 (Predecessor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total
																														Gains (losses)
																														included in
			Total				Total																							Earnings
			Realized and Unrealized				Realized and Unrealized																							related to
			Gains				Losses																							Instruments
					Included in					Included in																				still held at
					Other					Other												Transfers								the
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of						Ending		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	$	17	$	—	$	—	$	—		$	—		$	—	$	(7	)	$	—	$	—	$	—		$	—		$	10	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	548,805		—		29,929		—			(104		)	—		(9,534		)	—		—		—			(999		)	568,097		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		—			—		—		—			—			3,675		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	1,573,710		74		27,271		—			(2,250		)	60,845		(65,172		)	—		—		(67,478		)	(2,703		)	1,524,297		—
Total fixed maturity securities - available-for-sale	2,126,207		74		57,200		—			(2,354		)	60,845		(74,713		)	—		—		(67,478		)	(3,702		)	2,096,079		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			842		—			—		—		—			—			842		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	194,664		6,124		—		(2,686		)	—			—		(21,883		)	—		—		—			167			176,386		522
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	30,946		340		—		(40		)	—			4,059		(5,047		)	—		—		1,250			12			31,520		280
Total fixed maturity securities - trading	225,610		6,464		—		(2,726		)	—			4,901		(26,930		)	—		—		1,250			179			208,748		802
Total fixed maturity securities	2,351,817		6,538		57,200		(2,726		)	(2,354		)	65,746		(101,643		)	—		—		(66,228		)	(3,523		)	2,304,827		802
Equity securities	81,493		—		965		—			—			—		(674		)	—		—		—			—			81,784		—
Other long-term investments(1)	143,808		240		—		(20,747		)	—			—		—			—		—		—			—			123,301		(20,507		)
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	2,577,118		6,778		58,165		(23,473		)	(2,354		)	65,746		(102,317		)	—		—		(66,228		)	(3,523		)	2,509,912		(19,705		)
Total assets measured at fair value on a recurring basis	$	2,577,118	$	6,778	$	58,165	$	(23,473	)	$	(2,354	)	$	65,746	$	(102,317	)	$	—	$	—	$	(66,228	)	$	(3,523	)	$	2,509,912	$	(19,705	)
Liabilities:
Annuity account balances(2)	$	105,593	$	—	$	—	$	(1,714	)	$	—		$	—	$	—		$	63	$	4,914	$	—		$	—		$	102,456	$	—
Other liabilities(1)	371,365		13		—		(113,395		)	—			—		—			—		—		—			—			484,747		(113,382		)
Total liabilities measured at fair value on a recurring basis	$	476,958	$	13	$	—	$	(115,109	)	$	—		$	—	$	—		$	63	$	4,914	$	—		$	—		$	587,203	$	(113,382	)

(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, 2014 (Predecessor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total
																														Gains (losses)
																														included in
			Total				Total																							Earnings
			Realized and Unrealized				Realized and Unrealized																							related to
			Gains				Losses																							Instruments
					Included in					Included in																				still held at
					Other					Other												Transfers								the
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of						Ending		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	$	28	$	—	$	—	$	—		$	—		$	—	$	(18	)	$	—	$	—	$	—		$	—		$	10	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	545,808		—		34,066		—			(1,233		)	—		(9,794		)	—		—		—			(750		)	568,097		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		—			—		—		—			—			3,675		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	1,549,940		969		54,288		—			(7,265		)	90,232		(103,039		)	—		—		(55,293		)	(5,535		)	1,524,297		—
Total fixed maturity securities - available-for-sale	2,099,451		969		88,354		—			(8,498		)	90,232		(112,851		)	—		—		(55,293		)	(6,285		)	2,096,079		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			842		—			—		—		—			—			842		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	194,977		6,851		—		(3,114		)	—			—		(22,695		)	—		—		—			367			176,386		654
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	29,199		878		—		(53		)	—			4,059		(5,110		)	—		—		2,522			25			31,520		—
Total fixed maturity securities - trading	224,176		7,729		—		(3,167		)	—			4,901		(27,805		)	—		—		2,522			392			208,748		654
Total fixed maturity securities	2,323,627		8,698		88,354		(3,167		)	(8,498		)	95,133		(140,656		)	—		—		(52,771		)	(5,893		)	2,304,827		654
Equity securities	71,881		—		1,192		—			(166		)	9,551		(674		)	—		—		—			—			81,784		—
Other long-term investments(1)	196,133		245		—		(73,077		)	—			—		—			—		—		—			—			123,301		(72,832		)
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	2,591,641		8,943		89,546		(76,244		)	(8,664		)	104,684		(141,330		)	—		—		(52,771		)	(5,893		)	2,509,912		(72,178		)
Total assets measured at fair value on a recurring basis	$	2,591,641	$	8,943	$	89,546	$	(76,244	)	$	(8,664	)	$	104,684	$	(141,330	)	$	—	$	—	$	(52,771	)	$	(5,893	)	$	2,509,912	$	(72,178	)
Liabilities:
Annuity account balances(2)	$	107,000	$	—	$	—	$	(3,123	)	$	—		$	—	$	—		$	175	$	7,842	$	—		$	—		$	102,456	$	—
Other liabilities(1)	270,630		25		—		(214,142		)	—			—		—			—		—		—			—			484,747		(214,117		)
Total liabilities measured at fair value on a recurring basis	$	377,630	$	25	$	—	$	(217,265	)	$	—		$	—	$	—		$	175	$	7,842	$	—		$	—		$	587,203	$	(214,117	)

(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

		Successor				Predecessor
		Company				Company
		As of				As of
		June 30, 2015				December 31, 2014
	Fair Value	Carrying				Carrying
	Level	Amounts		Fair Values		Amounts		Fair Values
		(Dollars In Thousands)				(Dollars In Thousands)
Assets:
Mortgage loans on real estate	3	$	5,677,667	$	5,542,878	$	5,133,780	$	5,524,059
Policy loans	3	1,719,864		1,719,864		1,758,237		1,758,237
Fixed maturities, held-to-maturity(1)	3	565,334		489,950		435,000		458,422
Liabilities:
Stable value product account balances	3	$	1,861,280	$	1,859,409	$	1,959,488	$	1,973,624
Annuity account balances	3	10,792,560		10,260,654		10,950,729		10,491,775
Debt:
Bank borrowings	3	$	545,000	$	545,000	$	450,000	$	450,000
Senior Notes	2	1,117,739		1,058,816		850,000		1,100,380
Subordinated debt securities	2	452,424		445,760		540,593		552,098
Non-recourse funding obligations(2)	3	656,299		590,305		582,404		578,212

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, $470.0 million, fair value of $469.7 million, as of June 30, 2015 (Successor Company) and $435.0 million, fair value of $461.4 million, as of December 31, 2014 (Predecessor Company), relates to non-recourse funding obligations issued by Golden Gate V.

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CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Change in net unrealized gains (losses) on investments, income tax		$ (324,302)		$ (481,657)
Reclassification adjustment for investment amounts included in net income, income tax		831		700
Change in net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, income tax		(2,458)		(2,458)
Change in accumulated (loss) gain - derivatives, income tax		12		0
Reclassification adjustment for derivative amounts included in net income, income tax		(31)		0
Change in postretirement benefits liability adjustment, income tax		$ 0		$ 0
Predecessor
Change in net unrealized gains (losses) on investments, income tax	$ 259,738		$ 216,476		$ 476,065
Reclassification adjustment for investment amounts included in net income, income tax	(2,244)		(6,558)		(8,581)
Change in net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, income tax	(131)		(571)		1,858
Change in accumulated (loss) gain - derivatives, income tax	5		(325)		(9)
Reclassification adjustment for derivative amounts included in net income, income tax	13		214		449
Change in postretirement benefits liability adjustment, income tax	$ (6,475)		$ 1,896		$ 1,264

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BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2015

BASIS OF PRESENTATION

BASIS OF PRESENTATION

1.BASIS OF PRESENTATION

Basis of Presentation

On February 1, 2015, Protective Life Corporation (the “Company”) became a wholly owned subsidiary of The Dai-ichi Life Insurance Company, Limited, a kabushiki kaisha organized under the laws of Japan (“Dai-ichi Life”), when DL Investment (Delaware), Inc. a wholly owned subsidiary of Dai-ichi Life, merged with and into the Company (the “Merger”). Prior to February 1, 2015, and for the periods reported as “predecessor”, the Company’s stock was publicly traded on the New York Stock Exchange and subsequent to the Merger date, the Company remains as an SEC registrant within the United States. The Company is a holding company with subsidiaries that provide financial services through the production, distribution, and administration of insurance and investment products. The Company markets individual life insurance, credit life and disability insurance, guaranteed investment contracts, guaranteed funding agreements, fixed and variable annuities, and extended service contracts throughout the United States. The Company also maintains a separate segment devoted to the acquisition of insurance policies from other companies. Founded in 1907, Protective Life Insurance Company (“PLICO”) is the Company’s largest operating subsidiary.

The Merger was accounted for by the Company under the acquisition method of accounting under ASC Topic 805 Business Combinations. In accordance with ASC Topic 805-20-30, all identifiable assets acquired and liabilities assumed were measured at fair value as of the acquisition date. The Company elected to apply “pushdown” accounting by applying the guidance allowed by ASC Topic 805, Business Combinations, including the initial recognition of most of the Company’s assets and liabilities at fair value as of the acquisition date, and similarly recognizing goodwill calculated based on the terms of the transaction and the fair value of the new basis of net assets of the Company. The new basis of accounting will be the basis of the accounting records in the preparation of future financial statements and related disclosures after the Merger date. Goodwill of $735.7 million was recorded as of the acquisition date which represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in the Merger, and reflects the Company’s assembled workforce, future growth potential and other sources of value not associated with identifiable assets.

These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such accounting principles differ from statutory reporting practices used by insurance companies in reporting to state regulatory authorities. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements reflect all adjustments (consisting only of normal recurring items) necessary for a fair statement of the results for the interim periods presented. Operating results for the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company) are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2015 (Successor Company). The year-end consolidated condensed financial data included herein was derived from audited financial statements but does not include all disclosures required by GAAP within this report. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (Predecessor Company).

The operating results of companies in the insurance industry have historically been subject to significant fluctuations due to changing competition, economic conditions, interest rates, investment performance, insurance ratings, claims, persistency, and other factors.

Reclassifications

Certain reclassifications have been made in the previously reported financial statements and accompanying notes to make the prior year amounts comparable to those of the current year. Such reclassifications had no effect on previously reported net income or shareowner’s equity.

During the second quarter of 2015, the Company recorded an adjustment related to certain shadow adjustments to the Company’s unrealized investment losses and future policy benefits and claims liability for the previous interim period (period February 1, 2015 to March 31, 2015). Had this adjustment been recorded by the Company prior to March 31, 2015, the recording of this amount within that interim period would have resulted in an increase to other comprehensive income of $66.7 million, net of income taxes, with offsetting adjustments to the future policy benefits and claims liability and deferred income tax liability on the interim balance sheet. The Company concluded that this adjustment was not determined to be quantitatively or qualitatively material to the interim periods and that the previously issued interim financial statements as of and for the period ended March 31, 2015 were not materially affected. This adjustment was recorded by the Company within the presented interim consolidated condensed financial statements for the quarter ended June 30, 2015.

Entities Included

The consolidated condensed financial statements for the predecessor and successor periods presented in this report include the accounts of Protective Life Corporation and subsidiaries and its affiliate companies in which the Company holds a majority voting or economic interest. Intercompany balances and transactions have been eliminated.

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MORTGAGE LOANS (Details 3) - Commercial mortgage loans $ in Thousands	6 Months Ended
	Jun. 30, 2015 USD ($) loan	Dec. 31, 2014 USD ($) loan
Delinquent loans
Past due period at which to cease carrying accrued interest on delinquent loans	90 days
Past due period at which to initiate foreclosure proceedings	90 days
30-59 Delinquent	$ 8,045
60-89 Delinquent	2,370
Greater than 90 Delinquent	296
Total Delinquent	$ 10,711
Number of loans, 30-59 Delinquent | loan	5
Number of loans, 60-89 Delinquent | loan	2
Number of loans, Greater than 90 Delinquent | loan	1
Number of loans, Total Delinquent | loan	8
Predecessor
Delinquent loans
30-59 Delinquent		$ 8,972
Greater than 90 Delinquent		1,484
Total Delinquent		$ 10,456
Number of loans, 30-59 Delinquent | loan		4
Number of loans, Greater than 90 Delinquent | loan		1
Number of loans, Total Delinquent | loan		5

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OPERATING SEGMENTS (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Feb. 01, 2015	Dec. 31, 2014
Summarized financial information for the company's segments
Revenues		$ 1,018,761		$ 1,741,088
Segment Operating Income (Loss)		99,081		188,808
Realized investment (losses) gains - investments		(115,706)		(158,639)
Realized investment (losses) gains - derivatives		113,535		159,568
Income tax expense		(33,070)		(63,036)
Net Income		63,840		126,701
Realized gain (losses) on investments
Investment gains (losses) - gross		(108,071)		(143,127)
Less: amortization related to DAC/VOBA and benefits and settlement expenses		7,635		15,512
Realized investment gains (losses) - investments		(115,706)		(158,639)
Realized gain (losses) on derivatives
Realized investment gains (losses) - derivatives, gross		94,603		128,244
Less: VA GMWB economic cost		(18,932)		(31,324)
Realized investment gains (losses) - derivatives		113,535		159,568
Other-than-temporary impairments		5,734		5,734
Operating Segment Assets
Investments and other assets		66,508,646		66,508,646
Deferred policy acquisition costs and value of business acquired		1,393,926		1,393,926
Other intangibles		665,787		665,787
Goodwill		735,712		735,712		$ 735,700
Total assets		69,304,071		69,304,071
Operating | Life Marketing
Summarized financial information for the company's segments
Revenues		379,122		651,298
Segment Operating Income (Loss)		6,651		10,076
Operating Segment Assets
Investments and other assets		13,170,634		13,170,634
Deferred policy acquisition costs and value of business acquired		1,051,702		1,051,702
Other intangibles		329,102		329,102
Goodwill		203,543		203,543
Total assets		14,754,981		14,754,981
Operating | Acquisitions
Summarized financial information for the company's segments
Revenues		363,985		622,774
Segment Operating Income (Loss)		37,876		73,946
Operating Segment Assets
Investments and other assets		20,223,282		20,223,282
Deferred policy acquisition costs and value of business acquired		(190,193)		(190,193)
Other intangibles		40,936		40,936
Goodwill		14,524		14,524
Total assets		20,088,549		20,088,549
Operating | Annuities
Summarized financial information for the company's segments
Revenues		145,085		248,454
Segment Operating Income (Loss)		49,189		87,374
Operating Segment Assets
Investments and other assets		20,271,514		20,271,514
Deferred policy acquisition costs and value of business acquired		490,973		490,973
Other intangibles		203,446		203,446
Goodwill		336,677		336,677
Total assets		21,302,610		21,302,610
Operating | Stable Value Products
Summarized financial information for the company's segments
Revenues		16,656		26,998
Segment Operating Income (Loss)		9,349		15,464
Operating Segment Assets
Investments and other assets		1,737,745		1,737,745
Other intangibles		9,722		9,722
Goodwill		113,813		113,813
Total assets		1,861,280		1,861,280
Operating | Asset Protection
Summarized financial information for the company's segments
Revenues		69,680		113,707
Segment Operating Income (Loss)		5,897		9,944
Operating Segment Assets
Investments and other assets		858,958		858,958
Deferred policy acquisition costs and value of business acquired		41,444		41,444
Other intangibles		82,581		82,581
Goodwill		67,155		67,155
Total assets		1,050,138		1,050,138
Operating | Corporate and Other
Summarized financial information for the company's segments
Revenues		44,233		77,857
Segment Operating Income (Loss)		(9,881)		(7,996)
Operating Segment Assets
Investments and other assets		10,235,479		10,235,479
Total assets		10,235,479		10,235,479
Adjustments
Operating Segment Assets
Investments and other assets		11,034		11,034
Total assets		$ 11,034		$ 11,034
Predecessor
Summarized financial information for the company's segments
Revenues	$ 340,909		$ 1,155,343		$ 2,245,901
Segment Operating Income (Loss)	28,485		159,755		304,790
Realized investment (losses) gains - investments	89,815		74,920		143,453
Realized investment (losses) gains - derivatives	(117,118)		(72,465)		(160,828)
Income tax expense	327		(54,233)		(95,799)
Net Income	1,509		107,977		191,616
Realized gain (losses) on investments
Investment gains (losses) - gross	80,672		78,688		149,211
Less: amortization related to DAC/VOBA and benefits and settlement expenses	(9,143)		3,768		5,758
Realized investment gains (losses) - investments	89,815		74,920		143,453
Realized gain (losses) on derivatives
Realized investment gains (losses) - derivatives, gross	(123,274)		(89,926)		(195,276)
Less: VA GMWB economic cost	(6,156)		(17,461)		(34,448)
Realized investment gains (losses) - derivatives	(117,118)		(72,465)		(160,828)
Other-than-temporary impairments	481		1,460		3,051
Operating Segment Assets
Investments and other assets							$ 67,083,371
Deferred policy acquisition costs and value of business acquired							3,294,570
Goodwill							102,365
Total assets							70,480,306
Predecessor | Operating | Life Marketing
Summarized financial information for the company's segments
Revenues	145,595		407,032		791,798
Segment Operating Income (Loss)	(1,618)		26,349		49,834
Operating Segment Assets
Investments and other assets							13,858,491
Deferred policy acquisition costs and value of business acquired							1,973,156
Goodwill							10,192
Total assets							15,841,839
Predecessor | Operating | Acquisitions
Summarized financial information for the company's segments
Revenues	139,761		438,244		865,192
Segment Operating Income (Loss)	20,134		64,882		125,878
Operating Segment Assets
Investments and other assets							19,858,284
Deferred policy acquisition costs and value of business acquired							600,482
Goodwill							29,419
Total assets							20,488,185
Predecessor | Operating | Annuities
Summarized financial information for the company's segments
Revenues	7,884		155,417		300,074
Segment Operating Income (Loss)	13,164		55,258		106,901
Operating Segment Assets
Investments and other assets							20,783,373
Deferred policy acquisition costs and value of business acquired							684,574
Total assets							21,467,947
Predecessor | Operating | Stable Value Products
Summarized financial information for the company's segments
Revenues	8,181		27,109		54,928
Segment Operating Income (Loss)	4,529		17,287		34,684
Operating Segment Assets
Investments and other assets							1,958,867
Deferred policy acquisition costs and value of business acquired							621
Total assets							1,959,488
Predecessor | Operating | Asset Protection
Summarized financial information for the company's segments
Revenues	21,953		70,870		137,253
Segment Operating Income (Loss)	2,420		8,534		14,903
Operating Segment Assets
Investments and other assets							927,202
Deferred policy acquisition costs and value of business acquired							35,418
Goodwill							62,671
Total assets							1,025,291
Predecessor | Operating | Corporate and Other
Summarized financial information for the company's segments
Revenues	17,535		56,671		96,656
Segment Operating Income (Loss)	$ (10,144)		$ (12,555)		$ (27,410)
Operating Segment Assets
Investments and other assets							9,682,362
Deferred policy acquisition costs and value of business acquired							319
Goodwill							83
Total assets							9,682,764
Predecessor | Adjustments
Operating Segment Assets
Investments and other assets							14,792
Total assets							$ 14,792

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reclassifications out of accumulated other comprehensive income (loss)
Benefits and settlement expenses, net of reinsurance ceded		$ (694,606)		$ (1,180,905)
Realized investment gains (losses): All other investments		(102,337)		(137,393)
Net impairment losses recognized in earnings		(5,734)		(5,734)
Income before income tax		96,910		189,737
Tax benefit (expense)		(33,070)		(63,036)
Net Income		63,840		126,701
Gains and losses on derivative instruments | Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Reclassifications out of accumulated other comprehensive income (loss)
Benefits and settlement expenses, net of reinsurance ceded		(41)		(131)
Income before income tax		(41)		(131)
Tax benefit (expense)		14		45
Net Income		(27)		(86)
Unrealized gains and losses on available-for-sale securities | Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Reclassifications out of accumulated other comprehensive income (loss)
Realized investment gains (losses): All other investments		3,360		3,733
Net impairment losses recognized in earnings		(5,734)		(5,734)
Income before income tax		(2,374)		(2,001)
Tax benefit (expense)		831		700
Net Income		$ (1,543)		$ (1,301)
Predecessor
Reclassifications out of accumulated other comprehensive income (loss)
Benefits and settlement expenses, net of reinsurance ceded	$ (267,287)		$ (747,816)		$ (1,476,335)
Realized investment gains (losses): All other investments	81,153		80,148		152,262
Net impairment losses recognized in earnings	(481)		(1,460)		(3,051)
Income before income tax	1,182		162,210		287,415
Tax benefit (expense)	327		(54,233)		(95,799)
Net Income	1,509		107,977		191,616
Predecessor | Gains and losses on derivative instruments | Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Reclassifications out of accumulated other comprehensive income (loss)
Benefits and settlement expenses, net of reinsurance ceded	(36)		(614)		(1,284)
Income before income tax	(36)		(614)		(1,284)
Tax benefit (expense)	13		215		449
Net Income	(23)		(399)		(835)
Predecessor | Unrealized gains and losses on available-for-sale securities | Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Reclassifications out of accumulated other comprehensive income (loss)
Realized investment gains (losses): All other investments	6,891		20,198		27,568
Net impairment losses recognized in earnings	(481)		(1,460)		(3,051)
Income before income tax	6,410		18,738		24,517
Tax benefit (expense)	(2,244)		(6,558)		(8,581)
Net Income	4,166		12,180		15,936
Predecessor | Minimum Pension Liability Adjustment | Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Reclassifications out of accumulated other comprehensive income (loss)
Amortization of net actuarial gain/(loss)	(808)		(1,900)		(3,800)
Amortization of prior service credit/(cost)	31		95		190
Amortization of transition asset/(obligation)	5
Income before income tax	(772)		(1,805)		(3,610)
Tax benefit (expense)	270		632		1,263
Net Income	$ (502)		$ (1,173)		$ (2,347)

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OPERATING SEGMENTS

6 Months Ended

Jun. 30, 2015

OPERATING SEGMENTS

OPERATING SEGMENTS

18.OPERATING SEGMENTS

The Company has several operating segments each having a strategic focus. An operating segment is distinguished by products, channels of distribution, and/or other strategic distinctions. The Company periodically evaluates its operating segments, as prescribed in the ASC Segment Reporting Topic, and makes adjustments to its segment reporting as needed. There were no changes to the Company’s operating segments made or required to be made as a result of the Merger on February 1, 2015. A brief description of each segment follows.

· The Life Marketing segment markets fixed universal life (“UL”), indexed universal life, variable universal life (“VUL”), bank-owned life insurance (“BOLI”), and level premium term insurance (“traditional”) products on a national basis primarily through networks of independent insurance agents and brokers, broker-dealers, financial institutions, and independent marketing organizations.

· The Acquisitions segment focuses on acquiring, converting, and servicing policies acquired from other companies. The segment’s primary focus is on life insurance policies and annuity products that were sold to individuals. The level of the segment’s acquisition activity is predicated upon many factors, including available capital, operating capacity, potential return on capital, and market dynamics. Policies acquired through the Acquisitions segment are typically blocks of business where no new policies are being marketed. Therefore earnings and account values are expected to decline as the result of lapses, deaths, and other terminations of coverage unless new acquisitions are made.

· The Annuities segment markets fixed and VA products. These products are primarily sold through broker-dealers, financial institutions, and independent agents and brokers.

· The Stable Value Products segment sells fixed and floating rate funding agreements directly to the trustees of municipal bond proceeds, money market funds, bank trust departments, and other institutional investors. The segment also issues funding agreements to the FHLB, and markets guaranteed investment contracts (“GICs”) to 401(k) and other qualified retirement savings plans.  Additionally, the Company has contracts outstanding pursuant to a funding agreement-backed notes program registered with the United States Securities and Exchange Commission (the “SEC”) which offered notes to both institutional and retail investors.

· The Asset Protection segment markets extended service contracts and credit life and disability insurance to protect consumers’ investments in automobiles, watercraft, and recreational vehicles. In addition, the segment markets a guaranteed asset protection (“GAP”) product. GAP coverage covers the difference between the loan pay-off amount and an asset’s actual cash value in the case of a total loss.

· The Corporate and Other segment primarily consists of net investment income not assigned to the segments above (including the impact of carrying liquidity) and expenses not attributable to the segments above (including interest on certain corporate debt). This segment includes earnings from several non-strategic or runoff lines of business, various investment-related transactions, the operations of several small subsidiaries, and the repurchase of non-recourse funding obligations.

The Company uses the same accounting policies and procedures to measure segment operating income (loss) and assets as it uses to measure consolidated net income and assets. Segment operating income (loss) is income before income tax, excluding realized gains and losses on investments and derivatives net of the amortization related to DAC, VOBA, and benefits and settlement expenses. Operating earnings exclude changes in the GMWB embedded derivatives (excluding the portion attributed to economic cost), actual GMWB incurred claims and the related amortization of DAC/VOBA attributed to each of these items.

Segment operating income (loss) represents the basis on which the performance of the Company’s business is internally assessed by management. Premiums and policy fees, other income, benefits and settlement expenses, and amortization of DAC/VOBA are attributed directly to each operating segment. Net investment income is allocated based on directly related assets required for transacting the business of that segment. Realized investment gains (losses) and other operating expenses are allocated to the segments in a manner that most appropriately reflects the operations of that segment. Investments and other assets are allocated based on statutory policy liabilities net of associated statutory policy assets, while DAC/VOBA and goodwill are shown in the segments to which they are attributable. The goodwill as of June 30, 2015 (Successor Company) was the result of the Dai-ichi Merger. The purchase price was allocated to the segments in proportion to the segment’s respective fair value. The allocated purchase price in excess of the fair value of assets and liabilities of each segment resulted in the establishment of that segment’s goodwill as of the date of the Merger.

There were no significant intersegment transactions during the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the three and six months ended June 30, 2014 (Predecessor Company).

The following tables summarize financial information for the Company’s segments (Predecessor and Successor periods are not comparable):

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Revenues
Life Marketing	$	379,122		$	651,298		$	145,595		$	407,032		$	791,798
Acquisitions	363,985			622,774			139,761			438,244			865,192
Annuities	145,085			248,454			7,884			155,417			300,074
Stable Value Products	16,656			26,998			8,181			27,109			54,928
Asset Protection	69,680			113,707			21,953			70,870			137,253
Corporate and Other	44,233			77,857			17,535			56,671			96,656
Total revenues	$	1,018,761		$	1,741,088		$	340,909		$	1,155,343		$	2,245,901
Segment Operating Income (Loss)
Life Marketing	$	6,651		$	10,076		$	(1,618	)	$	26,349		$	49,834
Acquisitions	37,876			73,946			20,134			64,882			125,878
Annuities	49,189			87,374			13,164			55,258			106,901
Stable Value Products	9,349			15,464			4,529			17,287			34,684
Asset Protection	5,897			9,944			2,420			8,534			14,903
Corporate and Other	(9,881		)	(7,996		)	(10,144		)	(12,555		)	(27,410		)
Total segment operating income	99,081			188,808			28,485			159,755			304,790
Realized investment (losses) gains - investments(1)	(115,706		)	(158,639		)	89,815			74,920			143,453
Realized investment (losses) gains - derivatives	113,535			159,568			(117,118		)	(72,465		)	(160,828		)
Income tax (expense) benefit	(33,070		)	(63,036		)	327			(54,233		)	(95,799		)
Net income	$	63,840		$	126,701		$	1,509		$	107,977		$	191,616
Investment gains (losses)(2)	$	(108,071	)	$	(143,127	)	$	80,672		$	78,688		$	149,211
Less: amortization related to DAC/VOBA and benefits and settlement expenses	7,635			15,512			(9,143		)	3,768			5,758
Realized investment gains (losses) - investments	$	(115,706	)	$	(158,639	)	$	89,815		$	74,920		$	143,453
Derivative gains (losses)(3)	$	94,603		$	128,244		$	(123,274	)	$	(89,926	)	$	(195,276	)
Less: VA GMWB economic cost	(18,932		)	(31,324		)	(6,156		)	(17,461		)	(34,448		)
Realized investment gains (losses) - derivatives	$	113,535		$	159,568		$	(117,118	)	$	(72,465	)	$	(160,828	)

(1) Includes credit related other-than-temporary impairments of $5.7 million and $5.7 million for the three months ended June 30, 2015 (Successor Company) and for the period of February 1, 2015 to June 30, 2015 (Successor Company), respectively.  Includes $0.5 million, $1.5 million, and $3.1 million of credit related other-than-temporary impairments for the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the three and six months ended June 30, 2014 (Predecessor Company), respectively.

(2) Includes realized investment gains (losses) before related amortization.

(3) Includes realized gains (losses) on derivatives before the VA GMWB economic cost.

	Operating Segment Assets
	As of June 30, 2015 (Successor Company)
	(Dollars In Thousands)
	Life							Stable Value
	Marketing		Acquisitions			Annuities		Products
Investments and other assets	$	13,170,634	$	20,223,282		$	20,271,514	$	1,737,745
Deferred policy acquisition costs and value of business acquired	1,051,702		(190,193		)	490,973		—
Other intangibles	329,102		40,936			203,446		9,722
Goodwill	203,543		14,524			336,677		113,813
Total assets	$	14,754,981	$	20,088,549		$	21,302,610	$	1,861,280
	Asset		Corporate					Total
	Protection		and Other			Adjustments		Consolidated
Investments and other assets	$	858,958	$	10,235,479		$	11,034	$	66,508,646
Deferred policy acquisition costs and value of business acquired	41,444		—			—		1,393,926
Other intangibles	82,581		—			—		665,787
Goodwill	67,155		—			—		735,712
Total assets	$	1,050,138	$	10,235,479		$	11,034	$	69,304,071
	Operating Segment Assets
	As of December 31, 2014 (Predecessor Company)
	(Dollars In Thousands)
	Life							Stable Value
	Marketing		Acquisitions			Annuities		Products
Investments and other assets	$	13,858,491	$	19,858,284		$	20,783,373	$	1,958,867
Deferred policy acquisition costs and value of business acquired	1,973,156		600,482			684,574		621
Goodwill	10,192		29,419			—		—
Total assets	$	15,841,839	$	20,488,185		$	21,467,947	$	1,959,488
	Asset		Corporate					Total
	Protection		and Other			Adjustments		Consolidated
Investments and other assets	$	927,202	$	9,682,362		$	14,792	$	67,083,371
Deferred policy acquisition costs and value of business acquired	35,418		319			—		3,294,570
Goodwill	62,671		83			—		102,365
Total assets	$	1,025,291	$	9,682,764		$	14,792	$	70,480,306

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2)	6 Months Ended	12 Months Ended
	Jun. 30, 2015 USD ($) item item / security	Dec. 31, 2014 USD ($)
Determination of fair values
Number of primary sources of information used for determining fair value | item	1
Total number of primary sources of information available for determining fair value | item	3
Minimum percentage of the Company's fixed maturity securities priced by third party pricing services	90.00%
Number of independent non-binding broker quotes obtained per security | item / security	1
Percentage of derivatives excluding embedded derivatives that were priced using exchange prices or independent broker quotations	100.00%
Liabilities:
Fair value	$ 518,571,000
Annuity account balances
Financial instruments with book value approximating fair value	$ 66,700,000
Annuity account
Annuity account balances
Discount rate curve, base rate	LIBOR
Equity indexed annuities, discount rate for one month (as a percent)	0.35%
Equity indexed annuities, discount rate for five years (as a percent)	2.47%
Equity indexed annuities, discount rate for thirty years (as a percent)	3.98%
Level 3
Annuity account balances
Financial instruments that are valued using broker quotes	$ 209,400,000
Level 3 | Annuity account
Liabilities:
Fair value	95,178,000
Level 3 | Annuity account | Actuarial cash flow model
Unobservable input
Expenses per Policy	$ 80
Withdrawal rate (as a percent)	2.20%
Level 3 | Annuity account | Actuarial cash flow model | Minimum
Unobservable input
Lapse (as a percent)	2.20%
Nonperformance risk (as a percent)	0.16%
Asset earned rate (as a percent)	3.71%
Return on assets (as a percent)	1.50%
Level 3 | Annuity account | Actuarial cash flow model | Maximum
Unobservable input
Lapse (as a percent)	33.00%
Nonperformance risk (as a percent)	1.04%
Asset earned rate (as a percent)	5.77%
Return on assets (as a percent)	1.85%
Asset-Backed Securities | Level 2
Determination of fair values
Fair Value	$ 3,500,000,000
Asset-Backed Securities | Level 3
Determination of fair values
Fair Value	751,500,000
Other asset-backed securities | Level 3
Determination of fair values
Fair Value	$ 590,885,000
Percentage of underlying collateral of student-loan backed auction rate securities guaranteed by the Federal Family Education Loan Program ("FFELP"), minimum	97.00%
Annuity account balances
Financial instruments that are valued using broker quotes	$ 160,600,000
Other asset-backed securities | Level 3 | Discounted cash flow | Minimum
Unobservable input
Liquidity premium (as a percent)	0.55%
Paydown rate (as a percent)	9.95%
Other asset-backed securities | Level 3 | Discounted cash flow | Maximum
Unobservable input
Liquidity premium (as a percent)	1.50%
Paydown rate (as a percent)	14.69%
Other asset-backed securities | Level 3 | Discounted cash flow | Weighted average
Unobservable input
Liquidity premium (as a percent)	1.03%
Paydown rate (as a percent)	12.57%
Other asset-backed securities | Level 3 | Available-for-sale securities.
Determination of fair values
Fair Value	$ 590,900,000
Other asset-backed securities | Level 3 | Trading securities.
Determination of fair values
Fair Value	160,600,000
Corporate Bonds, U.S. Government-Related Securities, and Other Government Related Securities | Level 2
Determination of fair values
Fair Value	28,900,000,000
Corporate Bonds, U.S. Government-Related Securities, and Other Government Related Securities | Level 3
Determination of fair values
Fair Value	$ 1,100,000,000
Embedded derivative - GMWB
Annuity account balances
Discount rate curve, base rate	LIBOR
Embedded derivative - GMWB | Minimum
Unobservable input
Mortality (as a percent)	44.50%
Embedded derivative - GMWB | Maximum
Unobservable input
Mortality (as a percent)	100.00%
Embedded derivative - GMWB | Level 3
Determination of fair values
Fair Value	$ 59,888,000
Embedded derivative - GMWB | Level 3 | Actuarial cash flow model
Unobservable input
Utilization (as a percent)	99.00%
Policies that have a one-time over-utilization rate of a specified amount (as a percent)	10.00%
Specified level of one-time over-utilization (as a percent)	400.00%
Embedded derivative - GMWB | Level 3 | Actuarial cash flow model | Minimum
Unobservable input
Lapse (as a percent)	0.29%
Nonperformance risk (as a percent)	0.16%
Embedded derivative - GMWB | Level 3 | Actuarial cash flow model | Maximum
Unobservable input
Lapse (as a percent)	0.17%
Nonperformance risk (as a percent)	1.04%
Equity securities
Annuity account balances
Financial instruments with book value approximating fair value	$ 66,700,000
Equity securities | Level 3
Annuity account balances
Financial instruments that are valued using broker quotes	3,000,000
Equity securities | Level 2 and Level 3
Determination of fair values
Fair Value	81,000,000
Federal Home Loan Bank Stock	65,700,000
Corporate securities | Level 3
Determination of fair values
Fair Value	1,084,954,000
Annuity account balances
Financial instruments that are valued using broker quotes	$ 45,800,000
Corporate securities | Level 3 | Discounted cash flow | Minimum
Unobservable input
Spread over treasury (as a percent)	0.58%
Corporate securities | Level 3 | Discounted cash flow | Maximum
Unobservable input
Spread over treasury (as a percent)	12.00%
Corporate securities | Level 3 | Discounted cash flow | Weighted average
Unobservable input
Spread over treasury (as a percent)	2.25%
Embedded derivative - FIA
Annuity account balances
Discount rate curve, base rate	LIBOR
Embedded derivative - FIA | Minimum
Unobservable input
Mortality (as a percent)	49.00%
Embedded derivative - FIA | Maximum
Unobservable input
Mortality (as a percent)	80.00%
Embedded derivative - FIA | Level 3
Liabilities:
Fair value	$ 85,129,000
Embedded derivative - FIA | Level 3 | Actuarial cash flow model
Unobservable input
Expenses per Policy	$ 80
Embedded derivative - FIA | Level 3 | Actuarial cash flow model | Minimum
Unobservable input
Lapse (as a percent)	2.50%
Nonperformance risk (as a percent)	0.16%
Withdrawal rate (as a percent)	1.10%
Embedded derivative - FIA | Level 3 | Actuarial cash flow model | Maximum
Unobservable input
Lapse (as a percent)	40.00%
Nonperformance risk (as a percent)	1.04%
Withdrawal rate (as a percent)	4.50%
Embedded derivative - IUL
Annuity account balances
Discount rate curve, base rate	LIBOR
Embedded derivative - IUL | Minimum
Unobservable input
Mortality (as a percent)	44.00%
Embedded derivative - IUL | Maximum
Unobservable input
Mortality (as a percent)	137.00%
Embedded derivative - IUL | Level 3
Liabilities:
Fair value	$ 11,902,000
Embedded derivative - IUL | Level 3 | Actuarial cash flow model | Minimum
Unobservable input
Mortality (as a percent)	44.00%
Lapse (as a percent)	0.50%
Nonperformance risk (as a percent)	0.16%
Embedded derivative - IUL | Level 3 | Actuarial cash flow model | Maximum
Unobservable input
Mortality (as a percent)	137.00%
Lapse (as a percent)	10.00%
Nonperformance risk (as a percent)	1.04%
Embedded derivative - Modified coinsurance agreements
Liabilities:
Statutory policy liabilities (net of policy loans)	$ 2,500,000,000
Embedded derivative - Modified coinsurance agreements | Trading securities.
Determination of fair values
Fair Value	$ 2,700,000,000
Predecessor
Liabilities:
Fair value		$ 820,739,000
Annuity account balances
Financial instruments with book value approximating fair value		73,700,000
Predecessor | Level 3
Annuity account balances
Financial instruments that are valued using broker quotes		240,300,000
Predecessor | Level 3 | Annuity account
Liabilities:
Fair value		$ 97,825,000
Predecessor | Level 3 | Annuity account | Actuarial cash flow model
Unobservable input
Withdrawal rate (as a percent)		2.20%
Predecessor | Level 3 | Annuity account | Actuarial cash flow model | Minimum
Unobservable input
Mortality (as a percent)		49.00%
Lapse (as a percent)		2.20%
Nonperformance risk (as a percent)		0.12%
Asset earned rate (as a percent)		3.86%
Expenses per Policy		$ 88
Return on assets (as a percent)		1.50%
Predecessor | Level 3 | Annuity account | Actuarial cash flow model | Maximum
Unobservable input
Mortality (as a percent)		80.00%
Lapse (as a percent)		33.00%
Nonperformance risk (as a percent)		0.96%
Asset earned rate (as a percent)		5.92%
Expenses per Policy		$ 102
Return on assets (as a percent)		1.85%
Predecessor | Other asset-backed securities
Determination of fair values
Percentage of underlying collateral of student-loan backed auction rate securities guaranteed by the Federal Family Education Loan Program ("FFELP"), minimum		97.00%
Predecessor | Other asset-backed securities | Level 3
Determination of fair values
Fair Value		$ 563,752,000
Annuity account balances
Financial instruments that are valued using broker quotes		$ 169,700,000
Predecessor | Other asset-backed securities | Level 3 | Discounted cash flow | Minimum
Unobservable input
Liquidity premium (as a percent)		0.39%
Paydown rate (as a percent)		9.70%
Predecessor | Other asset-backed securities | Level 3 | Discounted cash flow | Maximum
Unobservable input
Liquidity premium (as a percent)		1.49%
Paydown rate (as a percent)		15.80%
Predecessor | Other asset-backed securities | Level 3 | Discounted cash flow | Weighted average
Unobservable input
Liquidity premium (as a percent)		0.69%
Paydown rate (as a percent)		12.08%
Predecessor | Embedded derivative - GMWB | Level 3
Liabilities:
Fair value		$ 245,090,000
Predecessor | Embedded derivative - GMWB | Level 3 | Actuarial cash flow model | Minimum
Unobservable input
Mortality (as a percent)		44.50%
Lapse (as a percent)		0.25%
Utilization (as a percent)		97.00%
Nonperformance risk (as a percent)		0.12%
Predecessor | Embedded derivative - GMWB | Level 3 | Actuarial cash flow model | Maximum
Unobservable input
Mortality (as a percent)		100.00%
Lapse (as a percent)		17.00%
Utilization (as a percent)		101.00%
Nonperformance risk (as a percent)		0.96%
Predecessor | Equity securities
Annuity account balances
Financial instruments with book value approximating fair value		$ 70,000,000
Predecessor | Equity securities | Level 3
Annuity account balances
Financial instruments that are valued using broker quotes		3,000,000
Predecessor | Corporate securities | Level 3
Determination of fair values
Fair Value		1,282,864,000
Annuity account balances
Financial instruments that are valued using broker quotes		$ 67,600,000
Predecessor | Corporate securities | Level 3 | Discounted cash flow | Minimum
Unobservable input
Spread over treasury (as a percent)		0.33%
Predecessor | Corporate securities | Level 3 | Discounted cash flow | Maximum
Unobservable input
Spread over treasury (as a percent)		7.50%
Predecessor | Corporate securities | Level 3 | Discounted cash flow | Weighted average
Unobservable input
Spread over treasury (as a percent)		2.19%
Predecessor | Fixed income securities
Annuity account balances
Financial instruments with book value approximating fair value		$ 3,700,000
Predecessor | Embedded derivative - FIA | Level 3
Liabilities:
Fair value		$ 124,465,000
Predecessor | Embedded derivative - FIA | Level 3 | Actuarial cash flow model | Minimum
Unobservable input
Mortality (as a percent)		49.00%
Lapse (as a percent)		2.50%
Nonperformance risk (as a percent)		0.12%
Expenses per Policy		$ 83
Withdrawal rate (as a percent)		1.10%
Predecessor | Embedded derivative - FIA | Level 3 | Actuarial cash flow model | Maximum
Unobservable input
Mortality (as a percent)		80.00%
Lapse (as a percent)		40.00%
Nonperformance risk (as a percent)		0.96%
Expenses per Policy		$ 97
Withdrawal rate (as a percent)		4.50%
Predecessor | Embedded derivative - IUL | Level 3
Liabilities:
Fair value		$ 6,691,000
Predecessor | Embedded derivative - IUL | Level 3 | Actuarial cash flow model | Minimum
Unobservable input
Mortality (as a percent)		37.00%
Lapse (as a percent)		0.50%
Nonperformance risk (as a percent)		0.12%
Predecessor | Embedded derivative - IUL | Level 3 | Actuarial cash flow model | Maximum
Unobservable input
Mortality (as a percent)		74.00%
Lapse (as a percent)		10.00%
Nonperformance risk (as a percent)		0.96%

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

6 Months Ended

Jun. 30, 2015

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).

Summary of changes in the accumulated balances for each component of AOCI

Changes in Accumulated Other Comprehensive Income (Loss) by Component

							Total
							Accumulated
	Unrealized			Accumulated			Other
	Gains and Losses			Gain and Loss			Comprehensive
Successor Company	on Investments(2)			Derivatives			Income (Loss)
	(Dollars In Thousands, Net of Tax)
Beginning Balance, February 1, 2015	$	—		$	—		$	—
Other comprehensive income (loss) before reclassifications	(894,507		)	(86		)	(894,593		)
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings	(4,566		)	—			(4,566		)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	1,301			86			1,387
Net current-period other comprehensive income (loss)	(897,772		)	—			(897,772		)
Ending Balance, June 30, 2015	$	(897,772	)	$	—		$	(897,772	)

(1) See Reclassification table below for details.

(2)As of June 30, 2015 net unrealized losses reported in AOCI were offset by $493.0 million due to the impact those net unrealized losses would have had on certain of the Company’s insurance assets and liabilities if the net unrealized losses had been recognized in net income.

Changes in Accumulated Other Comprehensive Income (Loss) by Component

										Total
										Accumulated
	Unrealized			Accumulated			Minimum			Other
	Gains and Losses			Gain and Loss			Pension Liability			Comprehensive
Predecessor Company	on Investments(2)			Derivatives			Adjustment			Income (Loss)
	(Dollars In Thousands, Net of Tax)
Beginning Balance, December 31, 2014	$	1,484,169		$	(82	)	$	(66,011	)	$	1,418,076
Other comprehensive income (loss) before reclassifications	482,370			9			(12,527		)	469,852
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings	(243		)	—			—			(243		)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	(4,166		)	23			502			(3,641		)
Net current-period other comprehensive income (loss)	477,961			32			(12,025		)	465,968
Ending Balance, January 31, 2015	$	1,962,130		$	(50	)	$	(78,036	)	$	1,884,044

(1) See Reclassification table below for details.

(2)As of January 31, 2015 and December 31, 2014, net unrealized losses reported in AOCI were offset by $(492.6) million and $(504.4) million, respectively, due to the impact those net unrealized losses would have had on certain of the Company’s insurance assets and liabilities if the net unrealized losses had been recognized in net income.

Changes in Accumulated Other Comprehensive Income (Loss) by Component

										Total
										Accumulated
	Unrealized			Accumulated			Minimum			Other
	Gains and Losses			Gain and Loss			Pension Liability			Comprehensive
Predecessor Company	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	986,958			(2		)	(27,395		)	959,561
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings	3,498			—			—			3,498
Amounts reclassified from accumulated other comprehensive income (loss)(1)	(45,290		)	1,155			5,086			(39,049		)
Net current-period other comprehensive income (loss)	945,166			1,153			(22,309		)	924,010
Ending Balance, December 31, 2014	$	1,484,169		$	(82	)	$	(66,011	)	$	1,418,076

(1) See Reclassification table below for details.

(2)As of December 31, 2014 and 2013, net unrealized losses reported in AOCI were offset by $(504.4) million and $(189.8) million, respectively, due to the impact those net unrealized losses would have had on certain of the Company’s insurance assets and liabilities if the net unrealized losses had been recognized in net income.

Schedule of reclassifications amounts out of AOCI

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
Successor Company	Other Comprehensive			Affected Line Item in the
For The Three Months Ended June 30, 2015	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(41	)	Benefits and settlement expenses, net of reinsurance ceded
	(41		)	Total before tax
	14			Tax (expense) or benefit
	$	(27	)	Net of tax
Unrealized gains and losses on available-for-sale securities
Net investment gains (losses)	$	3,360		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(5,734		)	Net impairment losses recognized in earnings
	(2,374		)	Total before tax
	831			Tax (expense) or benefit
	$	(1,543	)	Net of tax

(1) See Note 16, Derivative Financial Instruments for additional information.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
Successor Company	Other Comprehensive			Affected Line Item in the
February 1, 2015 to June 30, 2015	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(131	)	Benefits and settlement expenses, net of reinsurance ceded
	(131		)	Total before tax
	45			Tax (expense) or benefit
	$	(86	)	Net of tax
Unrealized gains and losses on available-for-sale securities
Net investment gains (losses)	$	3,733		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(5,734		)	Net impairment losses recognized in earnings
	(2,001		)	Total before tax
	700			Tax (expense) or benefit
	$	(1,301	)	Net of tax

(1) See Note 16, Derivative Financial Instruments for additional information.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
Predecessor Company	Other Comprehensive			Affected Line Item in the
January 1, 2015 to January 31, 2015	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(36	)	Benefits and settlement expenses, net of reinsurance ceded
	(36		)	Total before tax
	13			Tax (expense) or benefit
	$	(23	)	Net of tax
Unrealized gains and losses on available-for-sale securities
Net investment gains (losses)	$	6,891		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(481		)	Net impairment losses recognized in earnings
	6,410			Total before tax
	(2,244		)	Tax (expense) or benefit
	$	4,166		Net of tax
Postretirement benefits liability adjustment
Amortization of net actuarial gain/(loss)	$	(808	)	Other operating expenses
Amortization of prior service credit/(cost)	31			Other operating expenses
Amortization of transition asset/(obligation)	5			Other operating expenses
	(772		)	Total before tax
	270			Tax (expense) or benefit
	$	(502	)	Net of tax

(1) See Note 16, Derivative Financial Instruments for additional information.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
Predecessor Company	Other Comprehensive			Affected Line Item in the
For The Three Months Ended June 30, 2014	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
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 16, Derivative Financial Instruments for additional information.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
Predecessor Company	Other Comprehensive			Affected Line Item in the
For The Six Months Ended June 30, 2014	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
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 16, Derivative Financial Instruments for additional information.

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EMPLOYEE BENEFIT PLANS

6 Months Ended

Jun. 30, 2015

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

11.EMPLOYEE BENEFIT PLANS

Due to the Dai-ichi Life transaction, the Company re-measured all materially impacted benefit plans as of January 31, 2015 (Predecessor Company). Financial re-measurement was performed for the defined benefit pension plan, the unfunded excess benefit plan, and the postretirement life insurance plan as of January 31, 2015 (Predecessor Company). The January results for the retiree life plan were not material, and therefore, re-measurement was not deemed necessary for this plan. The Company has disclosed relevant financial information related to the applicable January 31, 2015 (Predecessor Company) re-measurements, as follows.

The following table presents the benefit obligation, fair value of plan assets, and the funded status of the Company’s defined benefit pension plan and unfunded excess benefit plan of January 31, 2015 (Predecessor Company) and December 31, 2014 (Predecessor Company). This table also includes the amounts not yet recognized as components of net periodic pension costs as of January 31, 2015 (Predecessor Company) and December 31, 2014 (Predecessor Company).

	Predecessor Company
	Defined Benefit						Unfunded Excess
	Pension Plan						Benefits Plan
	As of January 31, 2015			As of December 31, 2014			As of January 31, 2015			As of December 31, 2014
	(Dollars In Thousands)
Accumulated benefit obligation, end of period	$	262,290		$	249,453		$	49,251		$	47,368
Change in projected benefit obligation:
Projected benefit obligation at beginning of period	$	267,331		$	219,152		$	49,575		$	39,679
Service cost	974			9,411			95			954
Interest cost	1,002			10,493			140			1,696
Amendments	—			—			—			—
Actuarial (gain) or loss	12,384			38,110			1,555			9,153
Benefits paid	(592		)	(9,835		)	(122		)	(1,907		)
Projected benefit obligation at end of period	281,099			267,331			51,243			49,575
Change in plan assets:
Fair value of plan assets at beginning of period	203,772			180,173			—			—
Actual return on plan assets	(3,525		)	17,921			—			—
Employer contributions(1)	2,165			15,513			122			1,907
Benefits paid	(592		)	(9,835		)	(122		)	(1,907		)
Fair value of plan assets at end of period	201,820			203,772			—			—
After reflecting FASB guidance
Funded status	(79,279		)	(63,559		)	(51,243		)	(49,575		)
Amounts recognized in the balance sheet:
Other liabilities	(79,279		)	(63,559		)	(51,243		)	(49,575		)
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss	96,965			80,430			22,401			20,983
Prior service cost/(credit)	(1,001		)	(1,033		)	23			24
Total amounts recognized in AOCI	$	95,964		$	79,397		$	22,424		$	21,007

(1) Employer contributions disclosed are based on the Company’s fiscal filing year.

As of January 31, 2015 (Predecessor Company) and December 31, 2014 (Predecessor Company), the projected benefit obligation associated with the postretirement life insurance plan was $9.8 million and $9.3 million, respectively.

As a result of the Merger on February 1, 2015, all unrecognized prior service costs or credits, actuarial gains or losses, and any remaining transition assets or obligations were not carried forward on the acquisition date. Therefore, the amounts presented in the “Amounts recognized in accumulated other comprehensive income” in the chart above were set to zero on the Merger date.

The benefit obligations as of January 31, 2015 (Predecessor Company) were determined based on the assumptions used in the 2014 year-end disclosures with the following exception:

	Defined Benefit		Unfunded Excess		Postretirement
	Pension Plan		Benefit Plan		Life Insurance Plan
Discount rate	3.55	%	3.26	%	3.79	%

Components of the net periodic benefit cost for the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the three and six months ended June 30, 2014 (Predecessor Company) are as follows:

	Successor										Predecessor
	Company										Company
	For The Three					February 1, 2015					January 1, 2015					For The Three					For The Six
	Months Ended					to					to					Months Ended					Months Ended
	June 30, 2015					June 30, 2015					January 31, 2015					June 30, 2014					June 30, 2014
	Defined			Unfunded		Defined			Unfunded		Defined			Unfunded		Defined			Unfunded		Defined			Unfunded
	Benefit			Excess		Benefit			Excess		Benefit			Excess		Benefit			Excess		Benefit			Excess
	Pension			Benefit		Pension			Benefit		Pension			Benefit		Pension			Benefit		Pension			Benefit
	Plan			Plan		Plan			Plan		Plan			Plan		Plan			Plan		Plan			Plan
	(Dollars In Thousands)										(Dollars In Thousands)
Service cost — benefits earned during the period	$	2,973		$	333	$	4,955		$	555	$	974		$	95	$	2,227		$	226	$	4,454		$	452
Interest cost on projected benefit obligation	2,433			408		4,055			680		1,002			140		2,587			406		5,174			812
Expected return on plan assets	(3,642		)	—		(6,070		)	—		(1,293		)	—		(3,065		)	—		(6,130		)	—
Amortization of prior service cost	—			—		—			—		(33		)	1		(98		)	3		(196		)	6
Amortization of actuarial losses	—			—		—			—		668			138		1,576			321		3,152			642
Total net periodic benefit cost	$	1,764		$	741	$	2,940		$	1,235	$	1,318		$	374	$	3,227		$	956	$	6,454		$	1,912

During the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company contributed $2.2 million to its defined benefit pension plan which was applied for the 2014 plan year. The Company did not contribute to the defined benefit pension plan during the period of February 1, 2015 to June 30, 2015 (Successor Company). The Company will continue to make contributions in future periods as necessary to at least satisfy minimum funding requirements. The Company may also make additional contributions in future periods to maintain an adjusted funding target attainment percentage (“AFTAP”) of at least 80% and to avoid certain Pension Benefit Guaranty Corporation (“PBGC”) reporting triggers.