Summary of Investments (Tables)

9 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Summary of fixed maturity investments classified as available-for-sale and the non-credit related components of other-than-temporary impairments (OTTI) in accumulated other comprehensive income (loss) (AOCI)

The following tables summarize fixed maturity investments classified as available-for-sale and the non-credit-related component of other-than-temporary impairments (“OTTI”) in accumulated other comprehensive income (loss) (“AOCI”):



	September 30, 2014
	Amortized		Gross unrealized		Gross unrealized		Estimated fair value		OTTI (gain) loss
Fixed maturities:	cost		gains		losses		and carrying value		included in AOCI ⁽¹⁾
U.S. government direct obligations and U.S. agencies	$	845,069	$	59,509	$	3,309	$	901,269	—
Obligations of U.S. states and their subdivisions	1,902,663		264,962		2,746		2,164,879		—
Foreign government securities	2,496		—		2		2,494		—
Corporate debt securities ⁽²⁾	11,013,781		729,468		82,954		11,660,295		(2,299		)
Asset-backed securities	1,334,543		134,218		14,465		1,454,296		(90,795		)
Residential mortgage-backed securities	186,087		8,277		2,796		191,568		(283		)
Commercial mortgage-backed securities	886,633		25,111		4,136		907,608		—
Collateralized debt obligations	10,925		—		268		10,657		—
Total fixed maturities	$	16,182,197	$	1,221,545	$	110,676	$	17,293,066	$	(93,377	)

⁽¹⁾ Indicates the amount of any OTTI (gain) loss included in AOCI that is included in gross unrealized gains and losses. OTTI (gain) loss included in AOCI, as presented above, includes both the initial recognition of non-credit losses and the effects of subsequent increases and decreases in estimated fair value for those fixed maturity securities with previous non-credit impairment. The non-credit loss component of OTTI (gain) loss was in an unrealized gain position due to increases in estimated fair value subsequent to initial recognition of non-credit losses on such securities.

⁽²⁾ Includes perpetual debt investments with amortized cost of $157,742 and estimated fair value of $136,356.



	December 31, 2013
	Amortized		Gross unrealized		Gross unrealized		Estimated fair value		OTTI (gain) loss
Fixed maturities:	cost		gains		losses		and carrying value		included in AOCI ⁽¹⁾
U.S. government direct obligations and U.S. agencies	$	3,044,185	$	43,827	$	23,373	$	3,064,639	—
Obligations of U.S. states and their subdivisions	1,763,797		196,742		16,952		1,943,587		—
Foreign government securities	2,617		—		14		2,603		—
Corporate debt securities ⁽²⁾	10,454,252		568,261		223,532		10,798,981		(2,553		)
Asset-backed securities	1,553,510		131,277		29,150		1,655,637		(98,502		)
Residential mortgage-backed securities	244,723		8,335		3,473		249,585		(129		)
Commercial mortgage-backed securities	731,688		21,951		11,515		742,124		—
Collateralized debt obligations	12,587		14		213		12,388		—
Total fixed maturities	$	17,807,359	$	970,407	$	308,222	$	18,469,544	$	(101,184	)

⁽²⁾ Includes perpetual debt investments with amortized cost of $172,054 and estimated fair value of $143,644.

Schedule of amortized cost and estimated fair value of fixed maturity investments classified as available-for-sale

The amortized cost and estimated fair value of fixed maturity investments classified as available-for-sale, based on estimated cash flows, are shown in the table below. Actual maturities will likely differ from these projections because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



	September 30, 2014
	Amortized cost		Estimated fair value
Maturing in one year or less	$	548,021	$	578,347
Maturing after one year through five years	3,643,813		3,968,142
Maturing after five years through ten years	3,852,033		4,085,469
Maturing after ten years	5,110,752		5,453,109
Mortgage-backed and asset-backed securities	3,027,578		3,207,999
	$	16,182,197	$	17,293,066

Summary of information regarding the sales of securities classified as available-for-sale

The following table summarizes information regarding the sales of securities classified as available-for-sale:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Proceeds from sales	$	118,810	$	2,661,364	$	2,418,114	$	8,022,277
Gross realized gains from sales	7,196		11,061		29,434		62,465
Gross realized losses from sales	—		2		1,090		26,914

Schedule of the carrying value of the mortgage loan portfolio by component

The following table summarizes the carrying value of the mortgage loan portfolio by component:



	September 30, 2014			December 31, 2013
Principal	$	3,167,935		$	3,124,626
Unamortized premium (discount) and fees, net	10,638			12,519
Mortgage provision allowance	(2,890		)	(2,890		)
Total mortgage loans	$	3,175,683		$	3,134,255

Summary of activity in the mortgage provision allowance

The following table summarizes activity in the mortgage provision allowance:



	Nine Months Ended September 30, 2014		Year Ended December 31, 2013
	Commercial mortgages		Commercial mortgages
Beginning balance	$	2,890	$	2,890
Provision increases	—		273
Charge-off	—		(273		)
Ending balance	$	2,890	$	2,890

Allowance ending balance by basis of impairment method:
Collectively evaluated for impairment	$	2,890	$	2,890

Recorded investment balance in the mortgage loan portfolio, gross of allowance, by basis of impairment method:	$	3,178,573	$	3,137,145
Individually evaluated for impairment	13,082		13,906
Collectively evaluated for impairment	3,165,491		3,123,239

Schedule of unrealized investment losses, including the non-credit-related portion of OTTI losses reported in AOCI, by class of investment

The following tables summarize unrealized investment losses, including the non-credit-related portion of OTTI losses reported in AOCI, by class of investment:



	September 30, 2014
	Less than twelve months				Twelve months or longer				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
Fixed maturities:	fair value		loss and OTTI		fair value		loss and OTTI		fair value		loss and OTTI
U.S. government direct obligations and U.S. agencies	$	37,264	$	115	$	126,905	$	3,194	$	164,169	$	3,309
Obligations of U.S. states and their subdivisions	53,528		600		53,547		2,146		107,075		2,746
Foreign government securities	2,493		2		—		—		2,493		2
Corporate debt securities	1,168,237		14,295		852,422		68,659		2,020,659		82,954
Asset-backed securities	150,583		2,352		220,335		12,113		370,918		14,465
Residential mortgage-backed securities	5,333		11		24,667		2,785		30,000		2,796
Commercial mortgage-backed securities	108,115		729		98,207		3,407		206,322		4,136
Collateralized debt obligations	10,657		268		—		—		10,657		268
Total fixed maturities	$	1,536,210	$	18,372	$	1,376,083	$	92,304	$	2,912,293	$	110,676

Total number of securities in an unrealized loss position			154				177				331



	December 31, 2013
	Less than twelve months				Twelve months or longer				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
Fixed maturities:	fair value		loss and OTTI		fair value		loss and OTTI		fair value		loss and OTTI
U.S. government direct obligations and U.S. agencies	$	2,399,373	$	23,156	$	5,192	$	217	$	2,404,565	$	23,373
Obligations of U.S. states and their subdivisions	214,979		16,713		837		239		215,816		16,952
Foreign government securities	2,603		14		—		—		2,603		14
Corporate debt securities	2,632,093		144,367		511,376		79,165		3,143,469		223,532
Asset-backed securities	305,377		12,763		305,740		16,387		611,117		29,150
Residential mortgage-backed securities	32,131		3,454		1,011		19		33,142		3,473
Commercial mortgage-backed securities	177,395		6,703		48,825		4,812		226,220		11,515
Collateralized debt obligations	—		—		12,356		213		12,356		213
Total fixed maturities	$	5,763,951	$	207,170	$	885,337	$	101,052	$	6,649,288	$	308,222

Total number of securities in an unrealized loss position			458				109				567

Other than Temporary Impairment, Credit Losses Recognized in Earnings

The OTTI on fixed maturity securities where the loss portion is bifurcated and the credit related component is recognized in realized investment gains (losses) is summarized as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2014			2013		2014			2013
Beginning balance	$	167,961		$	167,961	$	167,961		$	167,788
Additional credit loss recognized on securities previously impaired	—			—		—			173
Reductions:
Due to sales, maturities or payoffs during the period	(646		)	—		(646		)	—
Due to increases in cash flows expected to be collected that are recognized over the remaining life of the security	(41,192		)	—		(41,192		)	—
Ending balance	$	126,123		$	167,961	$	126,123		$	167,961

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References+ Details

- Definition

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

+ References+ Details