Investments (Tables)

6 Months Ended

Jun. 30, 2011

Investments Abstract

Summary of Investments

		June 30, 2011		December 31, 2010
Fixed maturity securities, available-for-sale		$	15,153,807	$	14,304,597
Mortgage loans on real estate			908,048		885,811
Policy loans			1,229,663		1,228,418
Funds withheld at interest			5,671,844		5,421,952
Short-term investments			125,618		118,387
Other invested assets			799,341		707,403
Cash and cash equivalents			710,973		463,661
	Total cash and invested assets	$	24,599,294	$	23,130,229

Investment Income

Investment Income, Net of Related Expenses
Major categories of investment income, net of related expenses consist of the following (dollars in thousands):
	Three months ended				Six months ended
	June 30,				June 30,
	2011		2010		2011		2010
Fixed maturity securities available-for-sale	$	191,030	$	175,638	$	375,591	$	353,130
Mortgage loans on real estate		13,593		11,954		27,328		24,160
Policy loans		16,724		18,037		33,095		37,879
Funds withheld at interest		111,700		84,392		264,760		175,573
Short-term investments		883		1,130		1,808		2,378
Other invested assets		10,512		6,256		20,210		14,767
Investment revenue		344,442		297,407		722,792		607,887
Investment expense		(7,006)		(5,736)		(14,316)		(11,958)
Investment income, net of related expenses	$	337,436	$	291,671	$	708,476	$	595,929

Gain Loss On Investments

Investment Related Gains (Losses), Net
Investment related gains (losses), net consist of the following (dollars in thousands):
			Three months ended				Six months ended
			June 30,				June 30,
			2011		2010		2011		2010
Fixed maturity and equity securities available for sale:
	Other-than-temporary impairment losses on fixed maturities		$	(5,582)	$	(3,489)	$	(7,138)	$	(10,919)
	Portion of loss recognized in accumulated other
		comprehensive income (before taxes)		292		(139)		292		2,205
	Net other-than-temporary impairment losses on fixed
		maturities recognized in earnings		(5,290)		(3,628)		(6,846)		(8,714)
	Impairment losses on equity securities			(3,680)		(10)		(3,680)		(32)
	Gain on investment activity			28,208		19,363		57,584		35,462
	Loss on investment activity			(6,653)		(5,662)		(13,567)		(14,194)
Other impairment losses and change in mortgage loan provision				(3,186)		(1,165)		(2,610)		(2,395)
Derivatives and other, net				17,989		14,094		120,127		144,050
Net gains			$	27,388	$	22,992	$	151,008	$	154,177

RollForward Of Cumulative Credit Loss Component Of OTTI Income Loss

	Three months ended June 30,
	2011		2010
Balance, beginning of period	$	47,949	$	51,578
Initial impairments - credit loss OTTI recognized on securities not previously impaired		1,473		1,152
Additional impairments - credit loss OTTI recognized on securities previously impaired		3,780		3,303
Credit loss impairments previously recognized on securities which were sold during the period		(718)		(2,685)
Balance, end of period	$	52,484	$	53,348
	Six months ended June 30,
	2011		2010
Balance, beginning of period	$	47,291	$	47,905
Initial impairments - credit loss OTTI recognized on securities not previously impaired		1,473		2,724
Additional impairments - credit loss OTTI recognized on securities previously impaired		4,438		5,404
Credit loss impairments previously recognized on securities which were sold during the period		(718)		(2,685)
Balance, end of period	$	52,484	$	53,348

Available For Sale Securities

													Other-than-
									Estimated				temporary
June 30, 2011:			Amortized		Unrealized		Unrealized		Fair		% of		impairments
			Cost		Gains		Losses		Value		Total		in AOCI
Available-for-sale:
	Corporate securities		$	7,307,996	$	470,307	$	81,235	$	7,697,068	50.8	%	$	--
	Canadian and Canadian provincial
		governments		2,533,410		677,586		2,840		3,208,156	21.2			--
	Residential mortgage-backed securities			1,320,758		59,345		14,319		1,365,784	9.0			(258)
	Asset-backed securities			415,637		12,925		51,642		376,920	2.5			(6,258)
	Commercial mortgage-backed securities			1,333,832		92,380		67,107		1,359,105	9.0			(8,375)
	U.S. government and agencies			191,048		10,832		602		201,278	1.3			--
	State and political subdivisions			192,368		11,057		5,061		198,364	1.3			--
	Other foreign government securities			746,298		8,557		7,723		747,132	4.9			--
		Total fixed maturity securities	$	14,041,347	$	1,342,989	$	230,529	$	15,153,807	100.0	%	$	(14,891)
Non-redeemable preferred stock			$	104,444	$	5,337	$	2,263	$	107,518	75.6	%
Other equity securities				34,237		1,498		1,027		34,708	24.4
		Total equity securities	$	138,681	$	6,835	$	3,290	$	142,226	100.0	%

													Other-than-
									Estimated				temporary
December 31, 2010:			Amortized		Unrealized		Unrealized		Fair		% of		impairments
			Cost		Gains		Losses		Value		Total		in AOCI
Available-for-sale:
	Corporate securities		$	6,826,937	$	436,384	$	107,816	$	7,155,505	50.0	%	$	--
	Canadian and Canadian provincial
		governments		2,354,418		672,951		3,886		3,023,483	21.1			--
	Residential mortgage-backed securities			1,443,892		55,765		26,580		1,473,077	10.3			(1,650)
	Asset-backed securities			440,752		12,001		61,544		391,209	2.7			(4,963)
	Commercial mortgage-backed securities			1,353,279		81,839		97,265		1,337,853	9.4			(10,010)
	U.S. government and agencies			199,129		7,795		708		206,216	1.4			--
	State and political subdivisions			170,479		2,098		8,117		164,460	1.2			--
	Other foreign government securities			556,136		4,304		7,646		552,794	3.9			--
		Total fixed maturity securities	$	13,345,022	$	1,273,137	$	313,562	$	14,304,597	100.0	%	$	(16,623)
Non-redeemable preferred stock			$	100,718	$	4,130	$	5,298	$	99,550	71.0	%
Other equity securities				34,832		6,100		271		40,661	29.0
		Total equity securities	$	135,550	$	10,230	$	5,569	$	140,211	100.0	%

Investments Classified By Contractual Maturity Date

			Amortized		Fair
			Cost		Value
Available-for-sale:
	Due in one year or less		$	195,747	$	200,924
	Due after one year through five years			2,245,281		2,323,086
	Due after five year through ten years			3,637,689		3,888,290
	Due after ten years			4,892,402		5,639,698
	Asset and mortgage-backed securities			3,070,228		3,101,809
		Total	$	14,041,347	$	15,153,807

Fixed Maturity Holdings Industry Types Weighted Average Credit Ratings

June 30, 2011:					Estimated			Average Credit
			Amortized Cost		Fair Value	% of Total		Ratings
Finance		$	2,827,556	$	2,907,045	37.8	%	A
Industrial			3,366,149		3,604,280	46.8		BBB+
Utility			1,105,801		1,176,889	15.3		BBB+
Other			8,490		8,854	0.1		AA
	Total	$	7,307,996	$	7,697,068	100.0	%	A-
December 31, 2010:					Estimated			Average Credit
			Amortized Cost		Fair Value	% of Total		Ratings
Finance		$	2,782,936	$	2,833,022	39.6	%	A
Industrial			3,121,326		3,341,104	46.7		BBB+
Utility			908,737		967,017	13.5		BBB+
Other			13,938		14,362	0.2		AA+
	Total	$	6,826,937	$	7,155,505	100.0	%	A-

Investments In Debt And Equity Securities Gross Unrealized Losses Disclosures

		June 30, 2011					December 31, 2010
			Gross					Gross
		Number of	Unrealized				Number of	Unrealized
		Securities	Losses		% of Total		Securities	Losses		% of Total
Less than 20%		890	$	123,789	52.9	%	908	$	146,404	45.9	%
20% or more for less than six months		15		7,965	3.4		14		18,114	5.7
20% or more for six months or greater		56		102,065	43.7		106		154,613	48.4
	Total	961	$	233,819	100.0	%	1,028	$	319,131	100.0	%

Fair Value And Investments In Debt And Marketable Equity Securities And Certain Trading Assets Disclosures

			Less than 12 months				12 months or greater				Total
					Gross				Gross				Gross
June 30, 2011:			Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
			Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investment grade securities:
	Corporate securities		$	1,051,097	$	22,729	$	322,201	$	50,525	$	1,373,298	$	73,254
	Canadian and Canadian provincial
		governments		132,591		2,840		--		--		132,591		2,840
	Residential mortgage-backed securities			122,968		1,979		56,186		10,083		179,154		12,062
	Asset-backed securities			40,152		874		100,050		29,877		140,202		30,751
	Commercial mortgage-backed securities			154,382		8,007		68,039		21,881		222,421		29,888
	U.S. government and agencies			14,288		602		--		--		14,288		602
	State and political subdivisions			19,834		985		32,473		4,076		52,307		5,061
	Other foreign government securities			161,417		3,945		39,267		3,778		200,684		7,723
		Total investment grade securities		1,696,729		41,961		618,216		120,220		2,314,945		162,181
Non-investment grade securities:
	Corporate securities			120,371		2,918		65,818		5,063		186,189		7,981
	Residential mortgage-backed securities			5,075		931		11,169		1,326		16,244		2,257
	Asset-backed securities			2,852		424		26,391		20,467		29,243		20,891
	Commercial mortgage-backed securities			22,876		1,492		80,145		35,727		103,021		37,219
		Total non-investment grade securities		151,174		5,765		183,523		62,583		334,697		68,348
		Total fixed maturity securities	$	1,847,903	$	47,726	$	801,739	$	182,803	$	2,649,642	$	230,529
	Non-redeemable preferred stock		$	2,291	$	4	$	21,100	$	2,259	$	23,391	$	2,263
	Other equity securities			3,551		391		5,887		636		9,438		1,027
		Total equity securities	$	5,842	$	395	$	26,987	$	2,895	$	32,829	$	3,290
	Total number of securities in an
		unrealized loss position		550				411				961

			Less than 12 months				12 months or greater				Total
					Gross				Gross				Gross
December 31, 2010:			Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
			Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investment grade securities:
	Corporate securities		$	1,170,016	$	34,097	$	368,128	$	61,945	$	1,538,144	$	96,042
	Canadian and Canadian provincial
		governments		118,585		3,886		--		--		118,585		3,886
	Residential mortgage-backed securities			195,406		4,986		105,601		13,607		301,007		18,593
	Asset-backed securities			23,065		570		131,172		38,451		154,237		39,021
	Commercial mortgage-backed securities			132,526		4,143		109,158		29,059		241,684		33,202
	U.S. government and agencies			11,839		708		--		--		11,839		708
	State and political subdivisions			68,229		2,890		31,426		5,227		99,655		8,117
	Other foreign government securities			322,363		3,142		43,796		4,504		366,159		7,646
		Total investment grade securities		2,042,029		54,422		789,281		152,793		2,831,310		207,215
Non-investment grade securities:
	Corporate securities			58,420		1,832		91,205		9,942		149,625		11,774
	Residential mortgage-backed securities			1,162		605		38,206		7,382		39,368		7,987
	Asset-backed securities			--		--		23,356		22,523		23,356		22,523
	Commercial mortgage-backed securities			--		--		89,170		64,063		89,170		64,063
		Total non-investment grade securities		59,582		2,437		241,937		103,910		301,519		106,347
		Total fixed maturity securities	$	2,101,611	$	56,859	$	1,031,218	$	256,703	$	3,132,829	$	313,562
	Non-redeemable preferred stock		$	15,987	$	834	$	28,549	$	4,464	$	44,536	$	5,298
	Other equity securities			6,877		271		318		--		7,195		271
		Total equity securities	$	22,864	$	1,105	$	28,867	$	4,464	$	51,731	$	5,569
	Total number of securities in an
		unrealized loss position		520				508				1,028

Mortgage Loan Internal Credit Risk Grade

Internal credit risk grade:			June 30, 2011		December 31, 2010
	High investment grade		$	193,151	$	205,127
	Investment grade			535,654		585,818
	Average			94,357		38,152
	Watch list			75,259		44,208
	In or near default			17,319		18,745
		Total	$	915,740	$	892,050

Schedule Of Analysis Of Past Due Financing Receivables

The age analysis of the Company's past due recorded investment in mortgage loans gross of valuation allowances as of June 30, 2011 and December 31, 2010 are as follows (dollars in thousands):
			June 30, 2011		December 31, 2010
31-60 days past due			$	--	$	--
61-90 days past due				4,298		--
Greater than 90 days				13,021		15,555
	Total past due			17,319		15,555
Current				898,421		876,495
		Total	$	915,740	$	892,050

Recorded Investment And Allowance For Credit Losses

The following table presents the recorded investment in mortgage loans, by method of evaluation of credit loss, and the related valuation allowances, by type of credit loss, at (dollars in thousands):
			June 30, 2011		December 31, 2010
Mortgage loans:
	Evaluated individually for credit losses		$	35,919	$	35,646
	Evaluated collectively for credit losses			879,821		856,404
		Mortgage loans, gross of valuation allowances		915,740		892,050
Valuation allowances:
	Specific for credit losses			4,594		6,239
	Non-specifically identified credit losses			3,098		--
		Total valuation allowances		7,692		6,239
		Mortgage loans, net of valuation allowances	$	908,048	$	885,811

Allowance For Mortgage Loan And Lease Losses Provision For Loss Net

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Balance, beginning of period	$	5,664	$	7,014	$	6,239	$	5,784
Charge-offs		(1,157)		--		(1,157)		--
Recoveries		--		--		--		--
Provision		3,185		1,165		2,610		2,395
Balance, end of period	$	7,692	$	8,179	$	7,692	$	8,179

Impaired Financing Receivables Table

Information regarding the portion of the Company's mortgage loans that were impaired as of June 30, 2011 and December 31, 2010 are as follows (dollars in thousands):
			June 30, 2011		December 31, 2010
Impaired loans with valuation allowances			$	29,080	$	18,745
Impaired loans without valuation allowances				6,839		16,901
		Subtotal		35,919		35,646
Less: Valuation allowances on impaired loans				4,594		6,239
	Impaired loans		$	31,325	$	29,407