Income Tax (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

Pre-tax income for the years ended December 31, 2013, 2012 and 2011 consists of the following (dollars in thousands):



	2013		2012		2011
Pre-tax income - U.S.	$	473,223	$	644,219	$	400,278
Pre-tax income - foreign	162,031		275,004		363,293
Total pre-tax income	$	635,254	$	919,223	$	763,571

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision for income tax expense for the years ended December 31, 2013, 2012 and 2011 consists of the following (dollars in thousands):



	2013			2012		2011
Current income tax expense (benefit):
U.S.	$	(48,831	)	$	52,378	$	(1,606	)
Foreign	34,470			36,840		50,138
Total current	(14,361		)	89,218		48,532
Deferred income tax expense (benefit):
U.S.	226,771			183,929		155,896
Foreign	4,007			14,183		13,098
Total deferred	230,778			198,112		168,994
Total provision for income taxes	$	216,417		$	287,330	$	217,526

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Provision for income tax expense differed from the amounts computed by applying the U.S. federal income tax statutory rate of 35% to pre-tax income as a result of the following for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):



	2013			2012			2011
Tax provision at U.S. statutory rate	$	222,339		$	321,728		$	267,250
Increase (decrease) in income taxes resulting from:
Foreign tax rate differing from U.S. tax rate	(8,032		)	(14,705		)	(9,681		)
Differences in tax basis in foreign jurisdictions	(26,484		)	(21,086		)	(11,584		)
Deferred tax valuation allowance	26,507			635			4,147
Amounts related to tax audit contingencies	9,034			2,260			5,562
Corporate rate changes - Canada	(414		)	1,374			(40,593		)
Corporate rate changes - other	(1,184		)	(1,070		)	(1,933		)
Subpart F	8,255			13,571			9,340
Foreign tax credits	(1,786		)	(7,808		)	(3,546		)
Return to provision adjustments	(12,465		)	(7,351		)	(1,863		)
Other, net	647			(218		)	427
Total provision for income taxes	$	216,417		$	287,330		$	217,526
Effective tax rate	34.1		%	31.3		%	28.5		%

Schedule Of Income Tax Expense Benefit Intraperiod Tax Allocation [Table Text Block]

Total income taxes for the years ended December 31, 2013, 2012 and 2011 were as follows (dollars in thousands):



	2013			2012			2011
Provision for income taxes	$	216,417		$	287,330		$	217,526
Income tax from OCI and additional paid-in-capital:
Net unrealized holding gain (loss) on debt and equity securities recognized for financial reporting purposes	(467,454		)	246,682			275,975
Exercise of stock options	(3,125		)	(2,902		)	(4,934		)
Foreign currency translation	12,330			(921		)	1,579
Unrealized pension and post retirement	7,640			(2,779		)	(8,581		)
Total income taxes provided	$	(234,192	)	$	527,410		$	481,565

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences that give rise to significant portions of the deferred income tax asset and liabilities at December 31, 2013 and 2012, are presented in the following tables (dollars in thousands):



	2013			2012
Deferred income tax assets:
Nondeductible accruals	$	106,587		$	77,116
Differences between tax and financial reporting amounts concerning certain reinsurance transactions	59,942			17,054
Differences in the tax basis of cash and invested assets	2,106			—
Investment income differences	108,462			109,275
Deferred acquisition costs capitalized for tax	90,187			91,886
Net operating loss carryforward	252,192			159,821
Differences in foreign currency translation	—			621
Capital loss and tax credit carryforwards	2,356			23,595
Subtotal	621,832			479,368
Valuation allowance	(102,228		)	(10,100		)
Total deferred income tax assets	519,604			469,268
Deferred income tax liabilities:
Deferred acquisition costs capitalized for financial reporting	1,066,351			1,082,394
Differences between tax and financial reporting amounts concerning certain reinsurance transactions	906,197			637,002
Differences in the tax basis of cash and invested assets	310,332			832,940
Investment income differences	12,959			12,719
Differences in foreign currency translation	19,704			—
Total deferred income tax liabilities	2,315,543			2,565,055
Net deferred income tax liabilities	$	1,795,939		$	2,095,787
Balance sheet presentation of net deferred income tax liabilities:
Included in other assets	$	41,638		$	24,714
Included in deferred income taxes	1,837,577			2,120,501
Net deferred income tax liabilities	$	1,795,939		$	2,095,787

Summary of Income Tax Contingencies [Table Text Block]

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2013, 2012 and 2011, is as follows (dollars in thousands):



	Total Unrecognized Tax Benefits
	2013			2012		2011
Beginning balance, January 1	$	245,636		$	194,260	$	182,354
Additions for tax positions of prior years	41,228			47,438		7,968
Reductions for tax positions of prior years	(10,401		)	—		—
Additions for tax positions of current year	3,338			3,938		3,938
Ending balance, December 31	$	279,801		$	245,636	$	194,260

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References+ Details