Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2014

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 June 30, 2014 and December 31, 2013 are summarized below (dollars in thousands):



June 30, 2014:				Fair Value Measurements Using:
	Total			Level 1		Level 2			Level 3
Assets:
Fixed maturity securities – available-for-sale:
Corporate securities	$	14,151,411		$	107,831	$	12,755,640		$	1,287,940
Canadian and Canadian provincial governments	3,747,638			—		3,747,638			—
Residential mortgage-backed securities	986,139			—		800,592			185,547
Asset-backed securities	1,008,375			—		452,215			556,160
Commercial mortgage-backed securities	1,474,620			—		1,376,706			97,914
U.S. government and agencies securities	448,506			350,852		64,660			32,994
State and political subdivision securities	407,487			—		361,720			45,767
Other foreign government supranational and foreign government-sponsored enterprises	2,256,220			306,505		1,938,827			10,888
Total fixed maturity securities – available-for-sale	24,480,396			765,188		21,497,998			2,217,210
Funds withheld at interest – embedded derivatives	(20,194		)	—		—			(20,194		)
Cash equivalents	516,798			516,798		—			—
Short-term investments	21,702			10,085		11,617			—
Other invested assets:
Non-redeemable preferred stock	86,838			86,838		—			—
Other equity securities	53,906			53,906		—			—
Derivatives:
Interest rate swaps	56,229			—		56,229			—
Interest rate options	5,840			—		5,840			—
CPI swaps	69			—		69			—
Credit default swaps	10,626			—		10,626			—
Equity options	39,948			—		39,948			—
Foreign currency swaps	23,059			—		23,059			—
FVO contractholder-directed unit-linked investments	151,726			145,252		6,474			—
Other	17,407			17,407		—			—
Total other invested assets	445,648			303,403		142,245			—
Total	$	25,444,350		$	1,595,474	$	21,651,860		$	2,197,016
Liabilities:
Interest sensitive contract liabilities – embedded derivatives	$	940,236		$	—	$	—		$	940,236
Other liabilities:
Derivatives:
Interest rate swaps	865			—		865			—
Foreign currency forwards	7,679			—		7,679			—
Credit default swaps	(140		)	—		(140		)	—
Total	$	948,640		$	—	$	8,404		$	940,236



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			—
Interest rate options	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

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 June 30, 2014 and December 31, 2013 (dollars in thousands):



June 30, 2014:				Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
June 30, 2014:	Fair Value			Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
State and political subdivision securities	$	16,951		Market comparable securities	Liquidity premium	1	%
Corporate securities	256,581			Market comparable securities	Liquidity premium	0-2% (1%)
U.S. government and agencies	32,994			Market comparable securities	Liquidity premium	0-1% (1%)
Funds withheld at interest- embedded derivatives	(20,194		)	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	881,337			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	58,899			Discounted cash flow	Mortality	0-100% (2%)
					Lapse	0-25% (8%)
					Withdrawal	0-7% (3%)
					Own Credit	0-1% (1%)
					Long-term volatility	0-27% (15%)

December 31, 2013:

Fair Value

Valuation Technique(s)

Unobservable Input

Range (Weighted Average)

Assets:

State and political subdivision securities

29,024

Market comparable securities

Liquidity premium

Corporate securities

312,887

Market comparable securities

Liquidity premium

0-2% (1%)

U.S. government and agencies

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%)

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 three and six months ended June 30, 2014 and 2013 (dollars in thousands):



	Three months ended June 30,
	2014				2013
	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	$	—	$	10,058	$	—	$	—
Total fixed maturity securities	$	—	$	10,058	$	—	$	—


	Six months ended June 30,
	2014				2013
	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	$	—	$	10,058	$	—	$	14,012
Total fixed maturity securities	$	—	$	10,058	$	—	$	14,012

Fair Value, Assets 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 three and six months ended June 30, 2014, as well as the portion of gains or losses included in income for the three and six months ended June 30, 2014 attributable to unrealized gains or losses related to those assets and liabilities still held at June 30, 2014 (dollars in thousands):



For the three months ended June 30, 2014:	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
Fair value, beginning of period	$	1,291,701		$	177,927		$	502,675		$	90,373		$	38,031
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	(1,273		)	42			2,055			447			(185		)
Investment related gains (losses), net	165			31			942			6			(55		)
Claims & other policy benefits	—			—			—			—			—
Interest credited	—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—
Included in other comprehensive income	6,086			368			514			1,639			572
Purchases⁽¹⁾	52,549			13,398			64,884			—			165
Sales⁽¹⁾	(8,929		)	—			(14,258		)	—			—
Settlements⁽¹⁾	(49,002		)	(6,401		)	(6,318		)	(263		)	(5,534		)
Transfers into Level 3	—			901			5,666			5,712			—
Transfers out of Level 3	(3,357		)	(719		)	—			—			—
Fair value, end of period	$	1,287,940		$	185,547		$	556,160		$	97,914		$	32,994
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	$	(1,274	)	$	42		$	2,005		$	447		$	(185	)
Investment related gains (losses), net	—			—			—			—			—
Claims & other policy benefits	—			—			—			—			—
Interest credited	—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—



For the three months ended June 30, 2014 (continued):	Fixed maturity securities available-for-sale
	State and political subdivision securities			Other foreign government, supranational and foreign government-sponsored enterprises			Funds withheld at interest- embedded derivative			Interest sensitive contract liabilities embedded derivatives
Fair value, beginning of period	$	43,833		$	11,157		$	(99,029	)	$	(911,987	)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	10			—			—			—
Investment related gains (losses), net	(4		)	—			78,835			(5,182		)
Claims & other policy benefits	—			—			—			—
Interest credited	—			—			—			(27,285		)
Policy acquisition costs and other insurance expenses	—			—			—			—
Included in other comprehensive income	2,330			33			—			—
Purchases⁽¹⁾	—			—			—			(14,215		)
Sales⁽¹⁾	—			—			—			—
Settlements⁽¹⁾	(402		)	(302		)	—			18,433
Transfers into Level 3	—			—			—			—
Transfers out of Level 3	—			—			—			—
Fair value, end of period	$	45,767		$	10,888		$	(20,194	)	$	(940,236	)
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	$	10		$	—		$	—		$	—
Investment related gains (losses), net	—			—			78,835			(5,946		)
Claims & other policy benefits	—			—			—			—
Interest credited	—			—			—			(45,718		)
Policy acquisition costs and other insurance expenses	—			—			—			—



For the six months ended June 30, 2014:	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
Fair value, beginning of period	$	1,345,289		$	153,505		$	471,848		$	101,785		$	40,919
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	(2,385		)	98			4,112			819			(282		)
Investment related gains (losses), net	5			137			1,247			92			(250		)
Claims & other policy benefits	—			—			—			—			—
Interest credited	—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—
Included in other comprehensive income	8,536			3,255			6,014			4,674			877
Purchases⁽¹⁾	132,061			32,148			124,108			—			293
Sales⁽¹⁾	(47,676		)	(744		)	(20,870		)	(14,626		)	—
Settlements⁽¹⁾	(100,946		)	(12,573		)	(12,633		)	(542		)	(8,563		)
Transfers into Level 3	6,930			11,464			11,614			5,712			—
Transfers out of Level 3	(53,874		)	(1,743		)	(29,280		)	—			—
Fair value, end of period	$	1,287,940		$	185,547		$	556,160		$	97,914		$	32,994
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	$	(2,336	)	$	94		$	2,005		$	875		$	(282	)
Investment related gains (losses), net	—			—			—			—			—
Claims & other policy benefits	—			—			—			—			—
Interest credited	—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—



For the six months ended June 30, 2014 (continued):	Fixed maturity securities available-for-sale
	State and political subdivision securities			Other foreign government, supranational and foreign government-sponsored enterprises			Funds withheld at interest- embedded derivative			Other invested assets- non-redeemable preferred stock			Interest sensitive contract liabilities embedded derivatives
Fair value, beginning of period	$	43,776		$	37,997		$	(176,270	)	$	4,962		$	(868,725	)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	21			—			—			—			—
Investment related gains (losses), net	(8		)	—			156,076			—			(28,844		)
Claims & other policy benefits	—			—			—			—			—
Interest credited	—			—			—			—			(51,125		)
Policy acquisition costs and other insurance expenses	—			—			—			—			—
Included in other comprehensive income	2,443			33			—			—			—
Purchases⁽¹⁾	—			—			—			—			(29,408		)
Sales⁽¹⁾	—			—			—			—			—
Settlements⁽¹⁾	(465		)	(599		)	—			—			37,866
Transfers into Level 3	—			—			—			—			—
Transfers out of Level 3	—			(26,543		)	—			(4,962		)	—
Fair value, end of period	$	45,767		$	10,888		$	(20,194	)	$	—		$	(940,236	)
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	$	21		$	—		$	—		$	—		$	—
Investment related gains (losses), net	—			—			156,076			—			(30,156		)
Claims & other policy benefits	—			—			—			—			—
Interest credited	—			—			—			—			(88,991		)
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 three and six months ended June 30, 2013, as well as the portion of gains or losses included in income for the three and six months ended June 30, 2013 attributable to unrealized gains or losses related to those assets and liabilities still held at June 30, 2013 (dollars in thousands):



For the three months ended June 30, 2013:	Fixed maturity securities - available-for-sale
	Corporate securities			Residential mortgage-backed securities			Asset-backed securities			Commercial mortgage-backed securities			State and political subdivision securities
Fair value, beginning of period	$	1,646,903		$	140,717		$	288,231		$	175,294		$	42,639
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	(2,313		)	(111		)	1,526			581			9
Investment related gains (losses), net	350			198			226			(8,992		)	(4		)
Claims & other policy benefits	—			—			—			—			—
Interest credited	—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—
Included in other comprehensive income	(37,672		)	(2,714		)	2,601			15,445			(1,087		)
Purchases ⁽¹⁾	100,690			11,383			72,542			—			—
Sales⁽¹⁾	(39,793		)	(1,018		)	(7,995		)	(1,118		)	—
Settlements⁽¹⁾	(80,533		)	(7,367		)	(5,559		)	(228		)	(282		)
Transfers into Level 3	4,373			4,306			5,340			—			—
Transfers out of Level 3	—			(5,340		)	(4,306		)	—			—
Fair value, end of period	$	1,592,005		$	140,054		$	352,606		$	180,982		$	41,275
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	$	(2,191	)	$	(112	)	$	1,515		$	580		$	9
Investment related gains (losses), net	—			—			—			(10,109		)	—
Claims & other policy benefits	—			—			—			—			—
Interest credited	—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—



	Fixed maturity securities - available-for-sale
For the three months ended June 30, 2013 (continued):	Other foreign government, supranational and foreign government-sponsored enterprises			Funds withheld at interest- embedded derivatives			Short-term investments			Interest sensitive contract liabilities embedded derivatives
Fair value, beginning of period	$	27,865		$	(156,189	)	$	22,001		$	(890,476	)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	(76		)	—			—			—
Investment related gains (losses), net	—			47,716			—			35,809
Claims & other policy benefits	—			—			—			—
Interest credited	—			—			—			(28,020		)
Policy acquisition costs and other insurance expenses	—			—			—			—
Included in other comprehensive income	(959		)	—			(1		)	—
Purchases⁽¹⁾	—			—			—			(14,764		)
Sales⁽¹⁾	—			—			—			—
Settlements⁽¹⁾	—			—			(22,000		)	18,883
Transfers into Level 3	—			—			—			—
Transfers out of Level 3	—			—			—			—
Fair value, end of period	$	26,830		$	(108,473	)	$	—		$	(878,568	)
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	$	(76	)	$	—		$	—		$	—
Investment related gains (losses), net	—			47,717			—			34,788
Claims & other policy benefits	—			—			—			—
Interest credited	—			—			—			(46,902		)
Policy acquisition costs and other insurance expenses	—			—			—			—



For the six months ended June 30, 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
Fair value, beginning of period	$	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	(4,339		)	(6		)	2,405			1,083			—			18
Investment related gains (losses), net	(913		)	25			(1,521		)	(9,862		)	—			(8		)
Claims & other policy benefits	—			—			—			—			—			—
Interest credited	—			—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—			—
Included in other comprehensive income	(36,710		)	(200		)	14,638			27,945			—			(1,639		)
Purchases ⁽¹⁾	175,362			51,920			128,423			—			—			—
Sales⁽¹⁾	(56,071		)	(2,617		)	(16,293		)	(2,722		)	—			—
Settlements⁽¹⁾	(145,899		)	(12,289		)	(11,436		)	(2,468		)	—			(308		)
Transfers into Level 3	8,146			14,630			8,305			—			—			—
Transfers out of Level 3	(16,134		)	(5,340		)	(4,306		)	—			(4,538		)	—
Fair value, end of period	$	1,592,005		$	140,054		$	352,606		$	180,982		$	—		$	41,275
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	$	(4,218	)	$	(7	)	$	2,397		$	1,081		$	—		$	18
Investment related gains (losses), net	(202		)	—			—			(10,109		)	—			—
Claims & other policy benefits	—			—			—			—			—			—
Interest credited	—			—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—			—



	Fixed maturity securities - available-for-sale
For the six months ended June 30, 2013 (continued):	Other foreign government, supranational and foreign government-sponsored enterprises			Funds withheld at interest- embedded derivatives			Short-term investments			Interest sensitive contract liabilities embedded derivatives
Fair value, beginning of period	$	28,280		$	(243,177	)	$	22,031		$	(912,361	)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	(150		)	—			(3		)	—
Investment related gains (losses), net	—			134,704			—			87,123
Claims & other policy benefits	—			—			—			—
Interest credited	—			—			—			(61,016		)
Policy acquisition costs and other insurance expenses	—			—			—			—
Included in other comprehensive income	(1,300		)	—			(28		)	—
Purchases⁽¹⁾	—			—			—			(28,624		)
Sales⁽¹⁾	—			—			—			—
Settlements⁽¹⁾	—			—			(22,000		)	36,310
Transfers into Level 3	—			—			—			—
Transfers out of Level 3	—			—			—			—
Fair value, end of period	$	26,830		$	(108,473	)	$	—		$	(878,568	)
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	$	(150	)	$	—		$	(4	)	$	—
Investment related gains (losses), net	—			134,705			—			84,911
Claims & other policy benefits	—			—			—			—
Interest credited	—			—			—			(97,326		)
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.

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block]

The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods presented; that is, they are not measured at fair value on a recurring basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3).



	Carrying Value After Measurement				Net Investment Gains (Losses)
	At June 30,				Three months ended June 30,						Six months ended June 30,
(dollars in thousands)	2014		2013		2014			2013			2014			2013
Mortgage loans⁽¹⁾	$	15,660	$	13,575	$	(2,037	)	$	(27	)	$	(1,656	)	$	93
Limited partnership interests⁽²⁾	8,889		9,161		(4,171		)	—			(4,171		)	(2,429		)
Real estate investments⁽³⁾	—		4,136		—			(600		)	—			(600		)

(1)

Mortgage loans — The impaired mortgage loans presented above were written down to their estimated fair values at the date the impairments were recognized and are reported as losses above. Subsequent improvements in estimated fair value on previously impaired loans recorded through a reduction in the previously established valuation allowance are reported as gains above. Nonrecurring fair value adjustments on mortgage loans are based on the fair value of underlying collateral or discounted cash flows.

(2)

Limited partnership interests — The impaired limited partnership interests presented above were accounted for using the cost method. Impairments on these cost method investments were recognized at estimated fair value determined using the net asset values of the Company’s ownership interest as provided in the financial statements of the investees. The market for these investments has limited activity and price transparency.


(3)	Real estate investments — The impaired real estate investments presented above were written down to their estimated fair value at the date of impairment and are reported as losses above. The impairments were based on third-party appraisal values obtained and reviewed by the Company.

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 June 30, 2014 and December 31, 2013 (dollars in thousands):



June 30, 2014:	Carrying Value		Estimated Fair Value		Fair Value Measurement Using:
June 30, 2014:	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Assets:
Mortgage loans on real estate	$	2,555,800	$	2,654,439	$	—	$	—	$	2,654,439
Policy loans	1,250,635		1,250,635		—		1,250,635		—
Funds withheld at interest⁽¹⁾	5,958,657		6,377,951		—		—		6,377,951
Cash and cash equivalents⁽²⁾	861,319		861,319		861,319		—		—
Short-term investments⁽²⁾	23,894		23,894		23,894		—		—
Other invested assets⁽²⁾	460,905		509,067		5,216		38,446		465,405
Accrued investment income	279,368		279,368		—		279,368		—
Liabilities:
Interest-sensitive contract liabilities⁽¹⁾	$	9,890,923	$	9,818,666	$	—	$	—	$	9,818,666
Short-term debt	110,000		110,000		—		110,000		—
Long-term debt	2,214,705		2,438,495		—		—		2,438,495
Collateral finance facility	482,092		377,403		—		—		377,403

December 31, 2013:	Carrying Value		Estimated Fair Value		Fair Value Measurement Using:
December 31, 2013:	Carrying Value		Estimated Fair 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


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

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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