Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

	June 30, 2012
	Level 1		Level 2		Level 3		Total
Assets:
U.S. Treasury securities and obligations of U.S. Government	$	12,781	$	119,991	$	3,120	$	135,892
Federal agencies 1		-		26,123		-		26,123
Federal agency issued residential mortgage-backed securities 1		-		106,439		-		106,439
Subtotal		12,781		252,553		3,120		268,454
Corporate obligations:
Industrial		-		542,488		2,453		544,941
Energy		-		191,293		2,383		193,676
Communications and technology		-		219,485		-		219,485
Financial		-		305,180		11,642		316,822
Consumer		-		514,515		21,037		535,552
Public utilities		-		292,514		-		292,514
Subtotal		-		2,065,475		37,515		2,102,990
Corporate private-labeled residential mortgage-backed securities		-		151,638		-		151,638
Municipal securities		-		169,784		4,364		174,148
Other		-		103,178		-		103,178
Redeemable preferred stocks		15,842		-		-		15,842
Fixed maturity securities		28,623		2,742,628		44,999		2,816,250
Equity securities		2,131		33,904		1,149		37,184
Total	$	30,754	$	2,776,532	$	46,148	$	2,853,434
Percent of total		1%		97%		2%		100%
Liabilities:
Other policyholder funds
GMWB	$	-	$	-	$	278	$	278
Total	$	-	$	-	$	278	$	278

¹ Federal agency securities are not backed by the full faith and credit of the U.S. Government.

	December 31, 2011
	Level 1		Level 2		Level 3			Total
Assets:
U.S. Treasury securities and obligations of U.S. Government	$	12,876	$	118,130	$	3,431		$	134,437
Federal agencies 1		-		25,881		-			25,881
Federal agency issued residential mortgage-backed securities 1		-		119,637		-			119,637
Subtotal		12,876		263,648		3,431			279,955
Corporate obligations:
Industrial		-		486,380		500			486,880
Energy		-		169,342		2,369			171,711
Communications and technology		-		201,393		-			201,393
Financial		-		307,464		10,614			318,078
Consumer		-		474,553		21,934			496,487
Public utilities		-		296,337		-			296,337
Subtotal		-		1,935,469		35,417			1,970,886
Corporate private-labeled residential mortgage-backed securities		-		156,902		-			156,902
Municipal securities		-		163,611		4,911			168,522
Other		-		94,656		-			94,656
Redeemable preferred stocks		11,221		-		-			11,221
Fixed maturity securities		24,097		2,614,286		43,759			2,682,142
Equity securities		2,216		33,350		1,123			36,689
Total	$	26,313	$	2,647,636	$	44,882		$	2,718,831
Percent of total		1%		97%		2%			100%
Liabilities:
Other policyholder funds
GMWB	$	-	$	-	$	(187	)	$	(187	)
Total	$	-	$	-	$	(187	)	$	(187	)

¹ Federal agency securities are not backed by the full faith and credit of the U.S. Government.

Schedule of Fair Value of Fixed Maturities and Equity Securities

	June 30, 2012
	Level 1		Level 2		Level 3		Total
Fixed maturity securities available for sale:
Priced from external pricing services	$	28,623	$	2,695,082	$	-	$	2,723,705
Priced from independent broker quotations		-		47,546		-		47,546
Priced from internal matrices and calculations		-		-		44,999		44,999
Subtotal		28,623		2,742,628		44,999		2,816,250
Equity securities available for sale:
Priced from external pricing services		2,131		7,271		-		9,402
Priced from independent broker quotations		-		-		-		-
Priced from internal matrices and calculations		-		26,633		1,149		27,782
Subtotal		2,131		33,904		1,149		37,184
Total	$	30,754	$	2,776,532	$	46,148	$	2,853,434
Percent of total		1%		97%		2%		100%

	December 31, 2011
	Level 1		Level 2		Level 3		Total
Fixed maturity securities available for sale:
Priced from external pricing services	$	24,097	$	2,582,617	$	-	$	2,606,714
Priced from independent broker quotations		-		31,669		-		31,669
Priced from internal matrices and calculations		-		-		43,759		43,759
Subtotal		24,097		2,614,286		43,759		2,682,142
Equity securities available for sale:
Priced from external pricing services		2,216		7,444		-		9,660
Priced from independent broker quotations		-		-		-		-
Priced from internal matrices and calculations		-		25,906		1,123		27,029
Subtotal		2,216		33,350		1,123		36,689
Total	$	26,313	$	2,647,636	$	44,882	$	2,718,831
Percent of total		1%		97%		2%		100%

Schedule of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis

	Quarter Ended June 30, 2012
	Assets								Liabilities
	Fixed maturity securities available for sale			Equity securities available for sale		Total			GMWB
Beginning balance	$	45,652		$	1,093	$	46,745		$	(950	)
Included in earnings		3			-		3			1,371
Included in other comprehensive income		260			56		316			-
Purchases, issuances, sales and other dispositions:
Purchases		-			-		-			-
Issuances		-			-		-			141
Sales		-			-		-			-
Other dispositions		(916	)		-		(916	)		(284	)
Transfers into Level 3		-			-		-			-
Transfers out of Level 3		-			-		-			-
Ending balance	$	44,999		$	1,149	$	46,148		$	278
Net unrealized losses	$	248		$	56	$	304

	Six Months Ended June 30, 2012
	Assets								Liabilities
	Fixed maturity securities available for sale			Equity securities available for sale		Total			GMWB
Beginning balance	$	43,759		$	1,123	$	44,882		$	(187	)
Included in earnings		7			-		7			683
Included in other comprehensive income		(39	)		26		(13	)		-
Purchases, issuances, sales and other dispositions:
Purchases		-			-		-			-
Issuances		-			-		-			196
Sales		-			-		-			-
Other dispositions		(2,542	)		-		(2,542	)		(414	)
Transfers into Level 3		3,814			-		3,814			-
Transfers out of Level 3		-			-		-			-
Ending balance	$	44,999		$	1,149	$	46,148		$	278
Net unrealized losses	$	(51	)	$	26	$	(25	)

	Year Ended December 31, 2011
	Assets									Liabilities
	Fixed maturity securities available for sale			Equity securities available for sale			Total			GMWB
Beginning balance	$	55,801		$	1,180		$	56,981		$	(2,799	)
Included in earnings		11			92			103			2,500
Included in other comprehensive income		1,385			51			1,436			-
Purchases, issuances, sales and other dispositions:
Purchases		-			-			-			-
Issuances		-			-			-			163
Sales		-			-			-			-
Other dispositions		(2,977	)		(200	)		(3,177	)		(51	)
Transfers into Level 3		8,640			-			8,640			-
Transfers out of Level 3		(19,101	)		-			(19,101	)		-
Ending balance	$	43,759		$	1,123		$	44,882		$	(187	)
Net unrealized gains	$	1,401		$	105		$	1,506

Quantitative information about Level 3 fair value measurements

	Fair Value		Valuation Technique		Unobservable Inputs		Range (in basis points)		Weighted Average of Range
Fixed maturity securities	$	44,999		Market comparable		Spread adjustment		46-367		190

Summary of Fair value Estimates for Financial Instruments

	June 30, 2012				December 31, 2011
	Carrying Value		Fair Value		Carrying Value			Fair Value
Assets:
Investments:
Fixed maturity securities available for sale	$	2,816,250	$	2,816,250	$	2,682,142		$	2,682,142
Equity securities available for sale		37,184		37,184		36,689			36,689
Mortgage loans		579,500		623,887		601,923			642,905
Policy loans		79,447		79,447		80,375			80,375
Cash and short-term investments		23,021		23,021		59,752			59,752
Separate account assets		320,566		320,566		316,609			316,609
Liabilities:
Individual and group annuities		1,112,283		1,091,546		1,082,324			1,062,407
Supplementary contracts without life contingencies		54,898		53,872		56,193			54,824
Separate account liabilities		320,566		320,566		316,609			316,609
Other policyholder funds – GMWB		278		278		(187	)		(187	)