Summary of Investments (Tables)

6 Months Ended

Jun. 30, 2015

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”):



	June 30, 2015
	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	$	874,239	$	56,416	$	2,957	$	927,698	$	—
Obligations of U.S. states and their subdivisions	2,082,123		246,232		16,451		2,311,904		—
Foreign government securities	2,373		8		—		2,381		—
Corporate debt securities ⁽²⁾	11,819,023		584,963		152,896		12,251,090		(2,126		)
Asset-backed securities	1,244,518		139,173		10,857		1,372,834		(95,164		)
Residential mortgage-backed securities	143,205		5,963		1,980		147,188		(150		)
Commercial mortgage-backed securities	937,893		23,354		6,800		954,447		—
Collateralized debt obligations	9,537		—		2		9,535		—
Total fixed maturities	$	17,112,911	$	1,056,109	$	191,943	$	17,977,077	$	(97,440	)

⁽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 $129,537.



	December 31, 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	$	3,478,153	$	70,597	$	1,494	$	3,547,256	$	—
Obligations of U.S. states and their subdivisions	1,885,715		287,668		899		2,172,484		—
Foreign government securities	2,455		—		4		2,451		—
Corporate debt securities ⁽²⁾	11,258,517		763,036		82,104		11,939,449		(2,228		)
Asset-backed securities	1,263,089		149,152		13,702		1,398,539		(96,603		)
Residential mortgage-backed securities	167,793		7,368		1,932		173,229		(185		)
Commercial mortgage-backed securities	886,748		32,556		1,099		918,205		—
Collateralized debt obligations	10,674		—		209		10,465		—
Total fixed maturities	$	18,953,144	$	1,310,377	$	101,443	$	20,162,078	$	(99,016	)

⁽²⁾ Includes perpetual debt investments with amortized cost of $157,742 and estimated fair value of $131,799.

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.



	June 30, 2015
	Amortized cost		Estimated fair value
Maturing in one year or less	$	664,969	$	692,965
Maturing after one year through five years	3,560,986		3,839,087
Maturing after five years through ten years	4,865,732		5,019,172
Maturing after ten years	5,162,877		5,393,104
Mortgage-backed and asset-backed securities	2,858,347		3,032,749
Total fixed maturities	$	17,112,911	$	17,977,077

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 June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Proceeds from sales	$	337,206	$	59,643	$	2,995,877	$	2,299,304
Gross realized gains from sales	8,584		2,465		31,935		22,239
Gross realized losses from sales	304		28		324		1,090

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:



	June 30, 2015			December 31, 2014
Principal	$	3,356,720		$	3,356,374
Unamortized premium (discount) and fees, net	9,060			10,086
Mortgage provision allowance	(2,890		)	(2,890		)
Total mortgage loans	$	3,362,890		$	3,363,570

Summary of activity in the mortgage provision allowance



	Six Months Ended June 30, 2015		Year Ended December 31, 2014
	Commercial mortgages		Commercial mortgages
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:	$	3,365,780	$	3,366,460
Individually evaluated for impairment	12,773		12,986
Collectively evaluated for impairment	3,353,007		3,353,474

Transfer of Certain Financial Assets Accounted for as Secured Borrowings

The following table summarizes the collateral pledged by the Company under the securities lending program, by class of investment. Under the securities lending program the collateral pledged is, by definition, the securities loaned against the assets borrowed.



	June 30, 2015
	Remaining contractual maturity of the agreements
	Overnight and continuous
Securities lending transactions
U.S. government direct obligations and U.S. agencies	$	13,021
Corporate debt securities	171,944
Total secured borrowings	$	184,965

Amounts related to agreements not included in offsetting disclosure in Note 7	$	184,965

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:



	June 30, 2015
	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	$	142,556	$	2,391	$	25,355	$	566	$	167,911	$	2,957
Obligations of U.S. states and their subdivisions	301,557		16,134		735		317		302,292		16,451
Corporate debt securities	3,098,091		93,177		370,686		59,719		3,468,777		152,896
Asset-backed securities	180,431		1,910		208,839		8,947		389,270		10,857
Residential mortgage-backed securities	14		—		23,170		1,980		23,184		1,980
Commercial mortgage-backed securities	293,457		6,463		24,673		337		318,130		6,800
Collateralized debt obligations	9,534		2		—		—		9,534		2
Total fixed maturities	$	4,025,640	$	120,077	$	653,458	$	71,866	$	4,679,098	$	191,943

Total number of securities in an unrealized loss position			413				89				502



	December 31, 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	$	566,335	$	503	$	74,322	$	991	$	640,657	$	1,494
Obligations of U.S. states and their subdivisions	18,280		218		41,064		681		59,344		899
Foreign government securities	2,451		4		—		—		2,451		4
Corporate debt securities	836,263		16,775		764,528		65,329		1,600,791		82,104
Asset-backed securities	88,312		849		200,072		12,853		288,384		13,702
Residential mortgage-backed securities	4,663		11		24,052		1,921		28,715		1,932
Commercial mortgage-backed securities	35,015		127		57,333		972		92,348		1,099
Collateralized debt obligations	10,465		209		—		—		10,465		209
Total fixed maturities	$	1,561,784	$	18,696	$	1,161,371	$	82,747	$	2,723,155	$	101,443

Total number of securities in an unrealized loss position			134				153				287

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 June 30,					Six Months Ended June 30,
	2015			2014		2015			2014
Beginning balance	$	115,653		$	167,961	$	119,532		$	167,961
Initial impairments - credit loss on securities not previously impaired	—			—		450			—
Reductions due to increases in cash flows expected to be collected that are recognized over the remaining life of the security	(8,740		)	—		(13,069		)	—
Ending balance	$	106,913		$	167,961	$	106,913		$	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