Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and December 31, 2012 are summarized below (dollars in thousands):



December 31, 2013:				Fair Value Measurements Using:
	Total			Level 1		Level 2			Level 3
Assets:
Fixed maturity securities – available-for-sale:
Corporate securities	$	12,110,755		$	68,934	$	10,696,532		$	1,345,289
Canadian and Canadian provincial governments	3,381,025			—		3,381,025			—
Residential mortgage-backed securities	989,643			—		836,138			153,505
Asset-backed securities	894,832			—		422,984			471,848
Commercial mortgage-backed securities	1,388,946			—		1,287,161			101,785
U.S. government and agencies securities	501,351			396,092		64,340			40,919
State and political subdivision securities	320,820			—		277,044			43,776
Other foreign government, supranational and foreign government-sponsored enterprises	1,886,764			304,487		1,544,280			37,997
Total fixed maturity securities – available-for-sale	21,474,136			769,513		18,509,504			2,195,119
Funds withheld at interest – embedded derivatives	(176,270		)	—		—			(176,270		)
Cash equivalents	371,345			371,345		—			—
Short-term investments	111,572			105,649		5,923			—
Other invested assets:
Non-redeemable preferred stock	81,854			74,220		2,672			4,962
Other equity securities	323,877			323,877		—			—
Derivatives:
Interest rate swaps	9,904			—		9,904			—
Financial futures	2,554			—		2,554			—
CPI swaps	(309		)	—		(309		)	—
Credit default swaps	7,926			—		7,926			—
Equity options	33,869			—		33,869			—
Foreign currency swaps	21,283			—		21,283			—
FVO contractholder-directed unit-linked investments	138,892			132,643		6,249			—
Other	9,142			9,142		—			—
Total other invested assets	628,992			539,882		84,148			4,962
Total	$	22,409,775		$	1,786,389	$	18,599,575		$	2,023,811
Liabilities:
Interest sensitive contract liabilities – embedded derivatives	$	868,725		$	—	$	—		$	868,725
Other liabilities:
Derivatives:
Interest rate swaps	3,828			—		3,828			—
Foreign currency forwards	12,772			—		12,772			—
Credit default swaps	(356		)	—		(356		)	—
Equity options	(33		)	—		(33		)	—
Total	$	884,936		$	—	$	16,211		$	868,725



December 31, 2012:				Fair Value Measurements Using:
	Total			Level 1		Level 2			Level 3
Assets:
Fixed maturity securities – available-for-sale:
Corporate securities	$	12,380,071		$	43,544	$	10,667,964		$	1,668,563
Canadian and Canadian provincial governments	4,049,334			—		4,049,334			—
Residential mortgage-backed securities	1,042,064			—		948,133			93,931
Asset-backed securities	691,555			—		459,164			232,391
Commercial mortgage-backed securities	1,698,903			—		1,531,897			167,006
U.S. government and agencies securities	265,190			192,780		67,872			4,538
State and political subdivision securities	302,498			—		259,286			43,212
Other foreign government, supranational and foreign government-sponsored enterprises	1,861,999			297,025		1,536,694			28,280
Total fixed maturity securities – available-for-sale	22,291,614			533,349		19,520,344			2,237,921
Funds withheld at interest – embedded derivatives	(243,177		)	—		—			(243,177		)
Cash equivalents	575,864			575,864		—			—
Short-term investments	239,131			178,923		38,177			22,031
Other invested assets:
Non-redeemable preferred stock	74,841			64,268		10,573			—
Other equity securities	147,859			147,859		—			—
Derivatives:
Interest rate swaps	104,972			—		104,972			—
Foreign currency forwards	1,017			—		1,017			—
CPI swaps	1,446			—		1,446			—
Credit default swaps	(1,741		)	—		(1,741		)	—
Equity options	62,514			—		62,514			—
Collateral	17,002			1,323		15,679			—
Other	11,951			11,951		—			—
Total other invested assets	419,861			225,401		194,460			—
Total	$	23,283,293		$	1,513,537	$	19,752,981		$	2,016,775
Liabilities:
Interest sensitive contract liabilities – embedded derivatives	$	912,361		$	—	$	—		$	912,361
Other liabilities:
Derivatives:
Interest rate swaps	196			—		196			—
Foreign currency forwards	2,105			—		2,105			—
Credit default swaps	1,953			—		1,953			—
Foreign currency swaps	27,398			—		27,398			—
Total	$	944,013		$	—	$	31,652		$	912,361

Fair Value Unobservable Input Measurements [Table Text Block]

The following table presents quantitative information about significant unobservable inputs used in Level 3 fair value measurements that are developed by the Company, which does not include unobservable Level 3 asset and liability measurements provided by third parties, as of December 31, 2013 and 2012 (dollars in thousands):



December 31, 2013:				Valuation	Unobservable	Range
	Fair Value			Technique(s)	Input	(Weighted Average)
Assets:
State and political subdivision securities	$	29,024		Market comparable securities	Liquidity premium	1	%
Corporate securities	312,887			Market comparable securities	Liquidity premium	0-2% (1%)
U.S. Government and agencies securities	37,539			Market comparable securities	Liquidity premium	0-1% (1%)
Funds withheld at interest- embedded derivatives	(176,270		)	Total return swap	Mortality	0-100% (2%)
					Lapse	0-35% (7%)
					Withdrawal	0-5% (3%)
					Own Credit	0-1% (1%)
					Crediting rate	2-4% (3%)

Liabilities:
Interest sensitive contract liabilities- embedded derivatives- indexed annuities	838,670			Discounted cash flow	Mortality	0-100% (2%)
					Lapse	0-35% (7%)
					Withdrawal	0-5% (3%)
					Option budget projection	2-4% (3%)
Interest sensitive contract liabilities- embedded derivatives- variable annuities	30,055			Discounted cash flow	Mortality	0-100% (2%)
					Lapse	0-25% (6%)
					Withdrawal	0-7% (3%)
					Own Credit	0-1% (1%)
					Long-term volatility	0-27% (10%)



December 31, 2012:				Valuation	Unobservable	Range
	Fair Value			Technique(s)	Input	(Weighted Average)
Assets:
State and political subdivision securities	$	5,451		Market comparable securities	Liquidity premium	1	%
Corporate securities	450,177			Market comparable securities	Liquidity premium	0-2% (1%)
Short-term investments	22,031			Market comparable securities	Liquidity premium	1	%
Funds withheld at interest- embedded derivatives	(243,177		)	Total return swap	Mortality	0-100% (1%)
					Lapse	0-35% (6%)
					Withdrawal	0-5% (3%)
					Own Credit	0-1% (1%)
					Crediting rate	2-4% (3%)

Liabilities:
Interest sensitive contract liabilities- embedded derivatives- indexed annuities	740,256			Discounted cash flow	Mortality	0-100% (1%)
					Lapse	0-35% (6%)
					Withdrawal	0-5% (3%)
					Option budget projection	2-4% (3%)
Interest sensitive contract liabilities- embedded derivatives- variable annuities	172,105			Discounted cash flow	Mortality	0-100% (2%)
					Lapse	0-25% (5%)
					Withdrawal	0-7% (3%)
					Own Credit	0-1% (1%)
					Long-term volatility	0-27% (14%)

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Level Transfers [Table Text Block]

The following tables present the transfers between Level 1 and Level 2 during the years ended December 31, 2013 and 2012 (dollars in thousands):



	Twelve months ended December 31,
	2013				2012
	Transfers from Level 1 to Level 2		Transfers from Level 2 to Level 1		Transfers from Level 1 to Level 2		Transfers from Level 2 to Level 1
Fixed maturity securities - available-for-sale:
Corporate securities	$	—	$	30,599	$	14,773	$	4
U.S. government and agencies securities	—		—		—		11,152
State and political subdivision securities	—		—		12,794		—
Other foreign government, supranational and foreign government-sponsored enterprises	—		—		3,222		—
Total fixed maturity securities	—		30,599		30,789		11,156
Non-redeemable preferred stock	—		—		9,646		11,068
Total	$	—	$	30,599	$	40,435	$	22,224

Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Table Text Block]

The tables below provide a summary of the changes in fair value of Level 3 assets and liabilities for the year ended December 31, 2013, as well as the portion of gains or losses included in income for the year ended December 31, 2013 attributable to unrealized gains or losses related to those assets and liabilities still held at December 31, 2013 (dollars in thousands):



For the year ended December 31, 2013:	Fixed maturity securities - available-for-sale
	Corporate securities			Residential mortgage-backed securities			Asset-backed securities			Commercial mortgage-backed securities			U.S. Government and agencies securities			State and political subdivision securities
Balance January 1, 2013	$	1,668,563		$	93,931		$	232,391		$	167,006		$	4,538		$	43,212
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	(8,194		)	19			6,430			1,917			(156		)	36
Investment related gains (losses), net	(1,078		)	(294		)	(1,131		)	(16,704		)	(175		)	(16		)
Claims & other policy benefits	—			—			—			—			—			—
Interest credited	—			—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—			—
Included in other comprehensive income	(44,299		)	821			17,150			36,731			(639		)	222
Purchases⁽¹⁾	331,439			73,563			264,804			19,420			128			—
Sales⁽¹⁾	(271,402		)	(7,146		)	(26,005		)	(83,974		)	—			—
Settlements⁽¹⁾	(285,586		)	(26,661		)	(20,872		)	(7,970		)	(2,633		)	(657		)
Transfers into Level 3	33,776			24,727			9,031			4,081			44,394			979
Transfers out of Level 3	(77,930		)	(5,455		)	(9,950		)	(18,722		)	(4,538		)	—
Balance December 31, 2013	$	1,345,289		$	153,505		$	471,848		$	101,785		$	40,919		$	43,776
Unrealized gains and losses recorded in earnings for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Investment income, net of related expenses	$	(7,885	)	$	47		$	6,425		$	1,741		$	(156	)	$	36
Investment related gains (losses), net	(202		)	—			—			(10,243		)	—			—
Claims & other policy benefits	—			—			—			—			—			—
Interest credited	—			—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—			—



For the year ended December 31, 2013 (continued):	Fixed maturity securities - available-for-sale
		Other foreign government, supranational and foreign government-sponsored enterprises			Funds withheld at interest-embedded derivative			Short-term investments			Other invested assets - non- redeemable preferred stock		Interest sensitive contract liabilities embedded derivative
Balance January 1, 2013		$	28,280		$	(243,177	)	$	22,031		$	—	$	(912,361	)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses		(305		)	—			(4		)	—		—
Investment related gains (losses), net		—			66,907			—			—		142,050
Claims & other policy benefits		—			—			—			—		—
Interest credited		—			—			—			—		(115,409		)
Policy acquisition costs and other insurance expenses		—			—			—			—		—
Included in other comprehensive income		(1,570		)	—			(27		)	323		—
Purchases⁽¹⁾		—			—			—			—		(57,391		)
Sales⁽¹⁾		—			—			—			—		—
Settlements⁽¹⁾		(295		)	—			(22,000		)	—		74,386
Transfers into Level 3		11,887			—			—			4,639		—
Transfers out of Level 3		—			—			—			—		—
Balance December 31, 2013		$	37,997		$	(176,270	)	$	—		$	4,962	$	(868,725	)
Unrealized gains and losses recorded in earnings for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Investment income, net of related expenses		$	(305	)	$	—		$	(4	)	$	—	$	—
Investment related gains (losses), net		—			66,907			—			—		138,683
Claims & other policy benefits		—			—			—			—		—
Interest credited		—			—			—			—		(189,794		)
Policy acquisition costs and other insurance expenses		—			—			—			—		—


(1)	The amount reported within purchases, sales and settlements is the purchase price (for purchases) and the sales/settlement proceeds (for sales and settlements) based upon the actual date purchased or sold/settled. Items purchased and sold/settled in the same period are excluded from the rollforward. The Company had no issuances during the period.

The tables below provide a summary of the changes in fair value of Level 3 assets and liabilities for the year ended December 31, 2012, as well as the portion of gains or losses included in income for the year ended December 31, 2012 attributable to unrealized gains or losses related to those assets and liabilities still held at December 31, 2012 (dollars in thousands).



For the year ended December 31, 2012:	Fixed maturity securities - available-for-sale
	Corporate securities			Residential mortgage-backed securities			Asset-backed securities			Commercial mortgage-backed securities			U.S. Government and agencies securities			State and political subdivision securities
Balance January 1, 2012	$	974,169		$	81,655		$	193,492		$	115,976		$	—		$	10,373
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	(6,839		)	431			1,214			2,032			(89		)	14
Investment related gains (losses), net	(2,884		)	(311		)	(516		)	(9,503		)	—			(16		)
Claims & other policy benefits	—			—			—			—			—			—
Interest credited	—			—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—			—
Included in other comprehensive income	34,488			2,863			21,463			24,663			(12		)	4,491
Purchases⁽¹⁾	853,848			77,781			111,567			31,699			4,639			—
Sales⁽¹⁾	(60,224		)	(48,828		)	(13,140		)	(14,060		)	—			—
Settlements⁽¹⁾	(144,667		)	(8,541		)	(16,235		)	(813		)	—			(413		)
Transfers into Level 3	65,283			19,632			11,832			64,116			—			37,588
Transfers out of Level 3	(44,611		)	(30,751		)	(77,286		)	(47,104		)	—			(8,825		)
Balance December 31, 2012	$	1,668,563		$	93,931		$	232,391		$	167,006		$	4,538		$	43,212
Unrealized gains and losses recorded in earnings for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Investment income, net of related expenses	$	(6,852	)	$	295		$	1,156		$	2,032		$	(89	)	$	14
Investment related gains (losses), net	(1,329		)	(269		)	(849		)	(14,163		)	—			—
Claims & other policy benefits	—			—			—			—			—			—
Interest credited	—			—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—			—



For the year ended December 31, 2012 (continued):	Fixed maturity securities - available-for-sale
		Other foreign government, supranational and foreign government-sponsored enterprises			Funds withheld at interest-embedded derivative			Short-term investments			Other invested assets - other equity securities			Reinsurance ceded receivable - embedded derivative			Interest sensitive contract liabilities embedded derivative
Balance January 1, 2012		$	—		$	(361,456	)	$	—		$	11,489		$	4,945		$	(1,028,241	)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses		(44		)	—			(11		)	—			—			—
Investment related gains (losses), net		—			118,279			—			1,098			—			104,613
Claims & other policy benefits		—			—			—			—			—			770
Interest credited		—			—			—			—			—			(31,552		)
Policy acquisition costs and other insurance expenses		—			—			—			—			(449		)	—
Included in other comprehensive income		(139		)	—			28			843			—			—
Purchases⁽¹⁾		28,463			—			22,014			108			—			(63,934		)
Sales⁽¹⁾		—			—			—			(3,788		)	—			—
Settlements⁽¹⁾		—			—			—			—			(4,496		)	105,983
Transfers into Level 3		—			—			—			—			—			—
Transfers out of Level 3		—			—			—			(9,750		)	—			—
Balance December 31, 2012		$	28,280		$	(243,177	)	$	22,031		$	—		$	—		$	(912,361	)
Unrealized gains and losses recorded in earnings for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Investment income, net of related expenses		$	(44	)	$	—		$	(11	)	$	—		$	—		$	—
Investment related gains (losses), net		—			118,279			—			(183		)	—			97,216
Claims & other policy benefits		—			—			—			—			—			56
Interest credited		—			—			—			—			—			(129,828		)
Policy acquisition costs and other insurance expenses		—			—			—			—			(33		)	—


(1)	The amount reported within purchases, sales and settlements is the purchase price (for purchases) and the sales/settlement proceeds (for sales and settlements) based upon the actual date purchased or sold/settled. Items purchased and sold/settled in the same period are excluded from the rollforward. The Company had no issuances during the period.

The tables below provide a summary of the changes in fair value of Level 3 assets and liabilities for the year ended December 31, 2011, as well as the portion of gains or losses included in income for the year ended December 31, 2011 attributable to unrealized gains or losses related to those assets and liabilities still held at December 31, 2011 (dollars in thousands).



For the year ended December 31, 2011:	Fixed maturity securities - available-for-sale
	Corporate securities			Residential mortgage-backed securities			Asset-backed securities			Commercial mortgage-backed securities			State and political subdivision securities			Other foreign government, supranational and foreign government - sponsored enterprises
Balance January 1, 2011	$	872,179		$	183,291		$	228,558		$	147,556		$	6,983		$	6,736
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	218			836			1,686			2,321			361			2
Investment related gains (losses), net	1,863			(2,032		)	(10,236		)	(12,354		)	(15		)	—
Claims & other policy benefits	—			—			—			—			—			—
Interest credited	—			—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—			—
Included in other comprehensive income	21,011			4,580			3,902			8,060			3,390			4
Purchases⁽¹⁾	305,401			6,478			65,467			7,683			2,334			—
Sales⁽¹⁾	(48,653		)	(21,178		)	(27,844		)	—			—			—
Settlements⁽¹⁾	(125,797		)	(16,672		)	(24,092		)	(3,548		)	(88		)	—
Transfers into Level 3	80,302			30,159			45,984			76,955			48,469			20
Transfers out of Level 3	(132,333		)	(103,807		)	(89,933		)	(110,697		)	(51,061		)	(6,762		)
Balance December 31, 2011	$	974,191		$	81,655		$	193,492		$	115,976		$	10,373		$	—
Unrealized gains and losses recorded in earnings for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Investment income, net of related expenses	$	162		$	816		$	1,595		$	2,307		$	361		$	—
Investment related gains (losses), net	(1,223		)	(594		)	(5,058		)	(12,366		)	—			—
Claims & other policy benefits	—			—			—			—			—			—
Interest credited	—			—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—			—



For the year ended December 31, 2011 (continued):	Funds withheld at interest- embedded derivative			Other invested assets- non- redeemable preferred stock			Other invested assets- other equity securities			Reinsurance ceded receivable- embedded derivative			Interest sensitive contract liabilities embedded derivative
Balance January 1, 2011	$	(274,220	)	$	420		$	16,416		$	75,431		$	(721,485	)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	—			—			—			—			—
Investment related gains (losses), net	(87,236		)	—			3,504			—			(224,184		)
Claims & other policy benefits	—			—			—			—			(2,230		)
Interest credited	—			—			—			—			(88,255		)
Policy acquisition costs and other insurance expenses	—			—			—			9,421			—
Included in other comprehensive income	—			—			(4,663		)	—			—
Purchases⁽¹⁾	—			—			797			6,201			(71,505		)
Sales⁽¹⁾	—			(420		)	(4,565		)	—			—
Settlements⁽¹⁾	—			—			—			(86,108		)	79,418
Transfers into Level 3	—			—			—			—			—
Transfers out of Level 3	—			—			—			—			—
Balance December 31, 2011	$	(361,456	)	$	—		$	11,489		$	4,945		$	(1,028,241	)
Unrealized gains and losses recorded in earnings for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Investment income, net of related expenses	$	—		$	—		$	—		$	—		$	—
Investment related gains (losses), net	(87,236		)	—			—			—			(228,910		)
Claims & other policy benefits	—			—			—			—			(2,346		)
Interest credited	—			—			—			—			(167,673		)
Policy acquisition costs and other insurance expenses	—			—			—			18,589			—


(1)

Fair Value Assets Measured On Nonrecurring Basis [Text Block]



	Years Ended December 31,
	2013							2012
	Carrying Value Prior to Measurement		Estimated Fair Value After Measurement		Net Investment Gains (Losses)			Carrying Value Prior to Measurement		Estimated Fair Value After Measurement		Net Investment Gains (Losses)
Mortgage loans⁽¹⁾	$	9,620	$	10,330	$	710		$	24,295	$	20,480	$	(3,815	)
Limited partnership interests⁽²⁾	11,615		8,952		(2,663		)	25,191		16,944		(8,247		)
Real estate investments⁽³⁾	12,672		10,508		(2,164		)	6,593		4,500		(2,093		)

Financial Instruments Carrying Amounts And Estimated Fair Value [Table Text Block]

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments, which were not measured at fair value on a recurring basis, at December 31, 2013 and December 31, 2012 (dollars in thousands):



			Estimated Fair		Fair Value Measurement Using:
December 31, 2013	Carrying Value		Value		Level 1		Level 2		Level 3
Assets:
Mortgage loans on real estate	$	2,486,680	$	2,489,721	$	—	$	—	$	2,489,721
Policy loans	1,244,469		1,244,469		—		1,244,469		—
Funds withheld at interest⁽¹⁾	5,948,374		6,207,342		—		—		6,207,342
Cash and cash equivalents⁽²⁾	552,302		552,302		552,302		—		—
Short-term investments⁽²⁾	27,823		27,823		27,823		—		—
Other invested assets⁽²⁾	491,545		534,442		5,070		33,886		495,486
Accrued investment income	267,908		267,908		—		267,908		—
Liabilities:
Interest-sensitive contract liabilities⁽¹⁾	$	10,228,120	$	9,989,514	$	—	$	—	$	9,989,514
Long-term debt	2,214,350		2,333,023		—		—		2,333,023
Collateral finance facility	484,752		374,984		—		—		374,984

December 31, 2012
Assets:
Mortgage loans on real estate	$	2,300,587	$	2,426,688	$	—	$	—	$	2,426,688
Policy loans	1,278,175		1,278,175		—		1,278,175		—
Funds withheld at interest⁽¹⁾	5,837,359		6,362,324		—		—		6,362,324
Cash and cash equivalents⁽²⁾	684,028		684,028		684,028		—		—
Short-term investments⁽²⁾	48,951		48,951		48,951		—		—
Other invested assets⁽²⁾	596,336		626,358		—		32,250		594,108
Accrued investment income	201,344		201,344		—		201,344		—
Liabilities:
Interest-sensitive contract liabilities⁽¹⁾	$	11,566,962	$	11,926,339	$	—	$	—	$	11,926,339
Long-term debt	1,815,253		2,014,062		—		—		2,014,062
Collateral finance facility	652,010		456,050		—		—		456,050


(1)	Carrying values presented herein differ from those presented in the consolidated balance sheets because certain items within the respective financial statement caption are embedded derivatives and are measured at fair value on a recurring basis.


(2)	Carrying values presented herein differ from those presented in the consolidated balance sheets because certain items within the respective financial statement caption are measured at fair value on a recurring basis.