Restatement of Previously Issued Condensed Consolidated Financial Statements (Tables)

9 Months Ended

Sep. 30, 2013

Restatement of Previously Issued Condensed Consolidated Financial Statements

Summary of effect of the restatement adjustment on the unaudited condensed consolidated statement of income

The following table summarizes the effects of the restatement adjustment, previously discussed, on the unaudited condensed consolidated statement of income for the three months ended September 30, 2012:

	As previously
	reported		Adjustments		As restated
Net investment income	$	292,609	$	7,066	$	299,675
Other realized investment gains (losses), net	55,349		3,916		59,265
Total realized investment gains (losses), net	55,125		3,916		59,041
Total revenues	619,968		10,982		630,950
Amortization of DAC and VOBA	15,872		65		15,937
Total benefits and expenses, net	511,513		65		511,578
Income before income taxes	108,455		10,917		119,372
Income tax expense	45,184		3,613		48,797
Net income	63,271		7,304		70,575

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of income for the nine months ended September 30, 2012:

	As previously
	reported		Adjustments			As restated
Net investment income	$	895,530	$	(2,588	)	$	892,942
Other realized investment gains (losses), net	92,402		20,657			113,059
Total realized investment gains (losses), net	91,924		20,657			112,581
Total revenues	1,725,269		18,069			1,743,338
Amortization of DAC and VOBA	47,103		1,325			48,428
Total benefits and expenses, net	1,447,817		1,325			1,449,142
Income before income taxes	277,452		16,744			294,196
Income tax expense	102,139		5,534			107,673
Net income	175,313		11,210			186,523

Summary of effects of the restatement adjustments on the unaudited condensed consolidated statement of comprehensive income (loss)

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of comprehensive income (loss) for the three months ended September 30, 2012:

	As previously
	reported			Adjustments			As restated
Net income	$	63,271		$	7,304		$	70,575
Unrealized (losses) gains arising on fixed maturities, available-for-sale	300,076			(18,264		)	281,812
Reclassification adjustment for losses (gains) realized in net income	(37,801		)	11,334			(26,467		)
Net unrealized losses (gains) related to investments	253,697			(6,930		)	246,767
Future policy benefits, DAC, and VOBA adjustments	(79,224		)	1,201			(78,023		)
Other comprehensive income (loss) before income taxes	174,473			(5,729		)	168,744
Income tax (benefit) expense related to items of other comprehensive income (loss)	61,066			(2,006		)	59,060
Other comprehensive income (loss)	113,407			(3,723		)	109,684
Comprehensive income (loss)	176,678			3,581			180,259

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of comprehensive income (loss) for the nine months ended September 30, 2012:

	As previously
	reported			Adjustments			As restated
Net income	$	175,313		$	11,210		$	186,523
Unrealized (losses) gains arising on fixed maturities, available-for-sale	511,810			(22,940		)	488,870
Reclassification adjustment for losses (gains) realized in net income	(82,482		)	13,248			(69,234		)
Net unrealized losses (gains) related to investments	427,789			(9,692		)	418,097
Future policy benefits, DAC, and VOBA adjustments	(108,286		)	1,640			(106,646		)
Other comprehensive income (loss) before income taxes	319,503			(8,052		)	311,451
Income tax (benefit) expense related to items of other comprehensive income (loss)	111,826			(2,818		)	109,008
Other comprehensive income (loss)	207,677			(5,234		)	202,443
Comprehensive income (loss)	382,990			5,976			388,966

Summary of effects of the restatement adjustments on the unaudited condensed consolidated statement of stockholder's equity

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of stockholder’s equity for the nine months ended September 30, 2012:

	As previously
	reported		Adjustments			As restated
Net income	$	175,313	$	11,210		$	186,523
Other comprehensive income, net of income taxes	207,677		(5,234		)	202,443
Accumulated other comprehensive income	677,659		(5,234		)	672,425
Retained earnings	689,325		11,210			700,535
Total	2,144,170		5,976			2,150,146

Summary of effects of the restatement adjustments on the unaudited condensed consolidated statement of cash flows

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2012:

	As previously
	reported			Adjustments			As restated
Net cash provided by operating activities	$	199,470		$	8,244		$	207,714
Net change in short-term investments	(2,859,785		)	1,461,386			(1,398,399		)
Net change in repurchase agreements	1,473,393			(1,473,393		)	—
Net cash used in investing activities	(812,470		)	(12,007		)	(824,477		)
Change in due to parent and affiliates	1,791			3,763			5,554
Net cash provided by financing activities	609,883			3,763			613,646