Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Measurements

Schedule of financial assets and liabilities carried at fair value on a recurring basis

	Assets and liabilities measured at fair value on a recurring basis
	December 31, 2012
	Quoted prices		Significant
	in active		other		Significant
	markets for		observable		unobservable
	identical assets		inputs		inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Assets
Fixed maturities available-for-sale:
U.S. government direct obligations and U.S. agencies	$	—	$	2,834,074	$	—	$	2,834,074
Obligations of U.S. states and their subdivisions	—		2,018,505		—		2,018,505
Corporate debt securities	—		10,372,269		1,822		10,374,091
Asset-backed securities	—		1,595,601		265,538		1,861,139
Residential mortgage-backed securities	—		425,585		—		425,585
Commercial mortgage-backed securities	—		662,955		—		662,955
Collateralized debt obligations	—		11,963		32		11,995
Total fixed maturities available- for-sale	—		17,920,952		267,392		18,188,344
Fixed maturities held for trading:
U.S. government direct obligations and U.S. agencies	—		263,634		—		263,634
Corporate debt securities	—		61,336		—		61,336
Asset-backed securities	—		42,630		—		42,630
Total fixed maturities held for trading	—		367,600		—		367,600
Short-term investments available-for-sale	19,459		246,873		—		266,332
Collateral under securities lending agreements	142,022		—		—		142,022
Collateral under derivative counterparty collateral agreements	54,400		—		—		54,400
Derivative instruments designated as hedges:
Interest rate swaps	—		26,371		—		26,371
Cross-currency swaps	—		4,643		—		4,643
Derivative instruments not designated as hedges:
Interest rate swaps	—		1,062		—		1,062
Interest rate swaptions	—		342		—		342
Total derivative instruments	—		32,418		—		32,418
Separate account assets	12,171,024		12,434,502		—		24,605,526
Total assets	$	12,386,905	$	31,002,345	$	267,392	$	43,656,642
Liabilities
Payable under securities lending agreements	$	142,022	$	—	$	—	$	142,022
Derivative instruments designated as hedges:
Interest rate swaps	—		1,649		—		1,649
Cross-currency swaps	—		85,752		—		85,752
Derivative instruments not designated as hedges:
Interest rate swaps	—		757		—		757
Total derivative instruments	—		88,158		—		88,158
Separate account liabilities (1)	14		352,653		—		352,667
Total liabilities	$	142,036	$	440,811	$	—	$	582,847

(1)   Includes only separate account instruments which are carried at the fair value of the underlying liabilities owned by the separate accounts.

	Assets and liabilities measured at fair value on a recurring basis
	December 31, 2011
	Quoted prices		Significant
	in active		other		Significant
	markets for		observable		unobservable
	identical assets		inputs		inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Assets
Fixed maturities available-for-sale:
U.S. government direct obligations and U.S. agencies	$	—	$	2,315,671	$	—	$	2,315,671
Obligations of U.S. states and their subdivisions	—		2,071,170		—		2,071,170
Corporate debt securities	—		8,859,250		36,496		8,895,746
Asset-backed securities	—		1,672,423		279,021		1,951,444
Residential mortgage-backed securities	—		591,542		—		591,542
Commercial mortgage-backed securities	—		747,797		—		747,797
Collateralized debt obligations	—		16,391		22		16,413
Total fixed maturities available- for-sale	—		16,274,244		315,539		16,589,783
Fixed maturities held for trading:
U.S. government direct obligations and U.S. agencies	—		36,352		—		36,352
Corporate debt securities	—		60,243		—		60,243
Asset-backed securities	—		43,905		—		43,905
Commercial mortgage-backed securities	—		7,026		—		7,026
Total fixed maturities held for trading	—		147,526		—		147,526
Short-term investments available-for-sale	45,869		286,895		—		332,764
Collateral under securities lending agreements	7,099		—		—		7,099
Collateral under derivative counterparty collateral agreements	11,985		—		—		11,985
Derivative instruments designated as hedges:
Interest rate swaps	—		20,894		—		20,894
Cross-currency swaps	—		6,241		—		6,241
Derivative instruments not designated as hedges:
Interest rate swaps	—		4,687		—		4,687
Interest rate swaptions	—		944		—		944
Total derivative instruments	—		32,766		—		32,766
Separate account assets (1)	10,646,426		11,568,489		2,118		22,217,033
Total assets	$	10,711,379	$	28,309,920	$	317,657	$	39,338,956
Liabilities
Payable under securities lending agreements	$	7,099	$	—	$	—	$	7,099
Payable under derivative counterparty collateral agreements	11,985		—		—		11,985
Derivative instruments designated as hedges:
Interest rate swaps	—		1,011		—		1,011
Derivative instruments not designated as hedges:
Interest rate swaps	—		13,003		—		13,003
Total derivative instruments	—		14,014		—		14,014
Separate account liabilities (1)	74		278,796		—		278,870
Total liabilities	$	19,158	$	292,810	$	—	$	311,968

(1)   Includes only separate account instruments which are carried at the fair value of the underlying invested assets or liabilities owned by the separate accounts.

Schedule of assets and liabilities measured at fair value on a recurring basis, for which Level 3 inputs are utilized to determine fair value

	Recurring Level 3 financial assets and liabilities Year ended December 31, 2012
	Fixed maturities available-for-sale
	Corporate debt securities			Asset-backed securities			Collateralized debt obligations			Separate accounts			Total
Balance, January 1, 2012	$	36,496		$	279,021		$	22		$	2,118		$	317,657
Realized and unrealized gains (losses) included in:
Net income	(66		)	—			—			(3,692		)	(3,758		)
Other comprehensive income (loss)	102			33,346			11			3,604			37,063
Sales	(1,598		)	—			—			(1,997		)	(3,595		)
Settlements	(874		)	(41,809		)	(1		)	(33		)	(42,717		)
Transfers out of Level 3 (1)	(32,238		)	(5,020		)	—			—			(37,258		)
Balance, December 31, 2012	$	1,822		$	265,538		$	32		$	—		$	267,392
Total gains (losses) for the period included in net income attributable to the change in unrealized gains and losses relating to assets held at December 31, 2012	$	—		$	—		$	—		$	—		$	—

(1) Transfers out of Level 3 are due primarily to increased observability of inputs in valuation methodologies as evidenced by corroboration of market prices with multiple pricing vendors and internal models.

	Recurring Level 3 financial assets and liabilities Year ended December 31, 2011
	Fixed maturities available-for-sale
	Corporate debt securities			Asset-backed securities			Collateralized debt obligations		Separate accounts			Total
Balance, January 1, 2011	$	58,692		$	290,488		$	14	$	4,278		$	353,472
Realized and unrealized gains (losses) included in:
Net income	3,961			(192		)	—		37			3,806
Other comprehensive income (loss)	779			20,031			8		260			21,078
Sales	(14,430		)	—			—		(1,847		)	(16,277		)
Settlements	(17,460		)	(31,306		)	—		(158		)	(48,924		)
Transfers into Level 3 (1)	7,333			—			—		1,400			8,733
Transfers out of Level 3 (1)	(2,379		)	—			—		(1,852		)	(4,231		)
Balance, December 31, 2011	$	36,496		$	279,021		$	22	$	2,118		$	317,657
Total gains (losses) for the period included in net income attributable to the change in unrealized gains and losses relating to assets held at December 31, 2011	$	—		$	—		$	—	$	—		$	—

(1)  Transfers into Level 3 are due primarily to decreased observability of inputs in valuation methodologies.  Transfers out of Level 3 are due primarily to increased observability of inputs in valuation methodologies as evidenced by corroboration of market prices with multiple pricing vendors.

	Recurring Level 3 financial assets and liabilities Year ended December 31, 2010
	Fixed maturities available-for-sale
	Corporate debt securities			Asset-backed securities			Commercial mortgage-backed securities			Collateralized debt obligations			Derivative instruments			Separate accounts			Total
Balance, January 1, 2010	$	188,936		$	392,365		$	58,270		$	1,729		$	(3,317	)	$	9,960		$	647,943
Realized and unrealized gains (losses) included in:
Net income	475			(49,393		)	—			(34		)	—			—			(48,952		)
Other comprehensive income (loss)	5,630			70,026			—			161			—			622			76,439
Purchases, issuances and settlements	(30,084		)	(98,807		)	—			(1,842		)	—			(1,700		)	(132,433		)
Transfers in (out) of Level 3 (1)	(106,265		)	(23,703		)	(58,270		)	—			3,317			(4,604		)	(189,525		)
Balance, December 31, 2010	$	58,692		$	290,488		$	—		$	14		$	—		$	4,278		$	353,472
Total gains (losses) for the period included in net income attributable to the change in unrealized gains and losses relating to assets held at December 31, 2010	$	—		$	—		$	—		$	—		$	—		$	—		$	—

(1)  Transfers into Level 3 are due primarily to decreased observability of inputs in valuation methodologies.  Transfers out of Level 3 are due primarily to increased observability of inputs in valuation methodologies as evidenced by corroboration of market prices with multiple pricing vendors.

Schedule of significant unobservable inputs used during the valuation of assets categorized within Level 3 of the recurring fair value measurements table

	December 31, 2012
	Fair Value		Valuation Technique	Unobservable Input	Weighted Average
Fixed maturities available-for-sale:
Asset-backed securities(1)	$	265,470	Internal model pricing	Prepayment speed assumption	5
				Constant default rate assumption	5
				Adjusted ABX Index spread assumption (2)	655

(1)  Includes home improvement loans only.

(2)  Includes an internally calculated liquidity premium adjustment of 217.

Summary of the carrying amounts and estimated fair values of financial instruments not carried at fair value on a recurring basis

	December 31, 2012				December 31, 2011
	Carrying amount		Estimated fair value		Carrying amount		Estimated fair value
Assets
Mortgage loans on real estate	$	2,881,758	$	3,114,796	$	2,513,087	$	2,679,474
Policy loans	4,260,200		4,260,200		4,219,849		4,219,849
Limited partnership interests	46,707		43,954		48,053		41,931
Other investments	18,890		45,050		22,990		47,915
Liabilities
Annuity contract benefits without life contingencies	$	9,622,357	$	9,731,734	$	8,727,286	$	8,888,585
Policyholders’ funds	374,821		374,821		382,816		382,816
Commercial paper	97,987		97,987		97,536		97,536
Notes payable	532,491		563,860		532,463		515,104