Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2011

Schedule Of Derivative Instruments In Statement Of Financial Position Fair Value

				June 30, 2011						December 31, 2010
					Notional	Carrying Value/Fair Value					Notional	Carrying Value/Fair Value
					Amount		Assets		Liabilities		Amount		Assets		Liabilities
Derivatives not designated as
	hedging instruments:
	Interest rate swaps⁽¹⁾			$	2,623,012	$	37,001	$	29,041	$	2,302,853	$	20,042	$	17,132
	Financial futures⁽¹⁾				174,096		--		--		210,295		--		--
	Foreign currency forwards⁽¹⁾				39,700		5,706		--		39,700		5,924		--
	Consumer Price index (“CPI”) swaps⁽¹⁾				126,091		1,667		--		120,340		1,491		--
	Credit default swaps⁽¹⁾				612,500		2,210		4,201		392,500		2,429		131
	Equity options⁽¹⁾				253,803		44,326		--		33,041		5,043		--
	Embedded derivatives in:
		Modified coinsurance or funds
			withheld arrangements⁽²⁾		--		--		173,160		--		--		274,220
		Indexed annuity products⁽³⁾			--		86,029		758,431		--		75,431		668,951
		Variable annuity products⁽³⁾			--		--		45,741		--		--		52,534
	Total non-hedging derivatives				3,829,202		176,939		1,010,574		3,098,729		110,360		1,012,968

Derivatives designated as
	hedging instruments:
	Interest rate swaps⁽¹⁾				21,783		--		1,984		21,783		--		1,718
	Foreign currency swaps⁽¹⁾				615,323		--		66,425		615,323		--		45,749
	Total hedging derivatives				637,106		--		68,409		637,106		--		47,467
Total derivatives				$	4,466,308	$	176,939	$	1,078,983	$	3,735,835	$	110,360	$	1,060,435

(1)		Carried on the Company’s condensed consolidated balance sheets in other invested assets or other liabilities, at fair value.
(2)		Embedded liability is included on the condensed consolidated balance sheets with the host contract in funds withheld at interest, at fair value.
(3)		Embedded liability is included on the condensed consolidated balance sheets with the host contract in interest-sensitive contract liabilities, at fair value. Embedded asset is included on the condensed consolidated balance sheets in reinsurance ceded receivables.

Net Derivatives Gains Losses Recognized On Fair Value Derivatives And Related Hedged Items

Type of Fair Value Hedge	Hedged Item		Gains (Losses) Recognized for Derivatives		Gains (Losses) Recognized for Hedged Items		Ineffectiveness Recognized in Investment Related Gains (Losses)

For the three months ended June 30, 2011:
Interest rate swaps	Fixed rate fixed maturities	$	(489)	$	694	$	205

For the three months ended June 30, 2010:
Interest rate swaps	Fixed rate fixed maturities	$	(877)	$	1,046	$	169

For the six months ended June 30, 2011:
Interest rate swaps	Fixed rate fixed maturities	$	(266)	$	596	$	330

For the six months ended June 30, 2010:
Interest rate swaps	Fixed rate fixed maturities	$	(1,200)	$	1,500	$	300

Derivatives Hedging Instruments In Net Investment Hedging Relationships

		Derivative Gains (Losses) Deferred in AOCI
		For the three months ended				For the six months ended
Type of NIFO Hedge ^{(1) (2)}		2011		2010		2011			2010

Foreign currency swaps		$	(9,916)	$	16,846	$	(25,020)	$	8,766

(1)	There were no sales or substantial liquidations of net investments in foreign operations that would have required the reclassification of gains or losses from accumulated other comprehensive income (loss) into investment income during the periods presented.
(2)	There was no ineffectiveness recognized for the Company's hedges of net investments in foreign operations.

Changes In Estimated Fair Value Related To Embedded Derivatives

		Three months ended				Six months ended
		June 30,				June 30,
		2011		2010		2011		2010
Embedded derivatives in modified coinsurance or funds withheld
	arrangements and variable annuity contracts included in investment
	related gains (losses)	$	(15,335)	$	(108,422)	$	107,854	$	21,383
After the associated amortization of DAC and taxes, the related
	amounts included in net income		(3,626)		(7,172)		24,358		13,407
Amounts related to embedded derivatives in equity-indexed annuities
	included in benefits and expenses		(32,077)		(14,950)		(73,348)		(3,222)
After the associated amortization of DAC and taxes, the related
	amounts included in net income		(13,192)		(3,952)		(49,842)		(5,184)

Derivative Instruments Gain Loss By Income Statement Location

Non-hedging Derivatives

A summary of the effect of non-hedging derivatives, including embedded derivatives, on the Company’s income statement for the three and six months ended June 30, 2011 and 2010 is as follows (dollars in thousands):

					Gain (Loss) for the Three Months Ended
					June 30,
Type of Non-hedging Derivative			Income Statement Location of Gain (Loss)		2011		2010
Interest rate swaps			Investment related gains (losses), net		$	25,343	$	87,115
Financial futures			Investment related gains (losses), net			(2,873)		32,823
Foreign currency forwards			Investment related gains (losses), net			595		1,447
CPI swaps			Investment related gains (losses), net			503		108
Credit default swaps			Investment related gains (losses), net			988		(4,060)
Equity options			Investment related gains (losses), net			3,919		127
Embedded derivatives in:
	Modified coinsurance or funds withheld
		arrangements	Investment related gains (losses), net			10,525		32,512
	Indexed annuity products		Policy acquisition costs and other insurance
				expenses		4,026		2,596
	Indexed annuity products		Interest credited			(36,101)		(17,546)
	Variable annuity products		Investment related gains (losses), net			(25,860)		(140,934)
Total non-hedging derivatives					$	(18,935)	$	(5,812)

					Gain (Loss) for the Six Months Ended
					June 30,
Type of Non-hedging Derivative			Income Statement Location of Gain (Loss)		2011		2010
Interest rate swaps			Investment related gains (losses), net		$	14,613	$	98,455
Financial futures			Investment related gains (losses), net			(14,296)		21,077
Foreign currency forwards			Investment related gains (losses), net			(260)		618
CPI swaps			Investment related gains (losses), net			1,315		1,032
Credit default swaps			Investment related gains (losses), net			1,880		(3,284)
Equity options			Investment related gains (losses), net			(650)		127
Embedded derivatives in:
	Modified coinsurance or funds withheld
		arrangements	Investment related gains (losses), net			101,060		155,147
	Indexed annuity products		Policy acquisition costs and other insurance
				expenses		12,119		1,161
	Indexed annuity products		Interest credited			(85,466)		(4,383)
	Variable annuity products		Investment related gains (losses), net			6,794		(133,763)
Total non-hedging derivatives					$	37,109	$	136,187

Credit Risk

			June 30, 2011		December 31, 2010
Estimated fair value of derivatives in net asset (liability) position			$	(10,741)	$	(29,801)
	Securities pledged to counterparties as collateral⁽¹⁾			60,337		48,223
	Cash pledged from counterparties as collateral⁽²⁾			(18,310)		(10,300)
	Securities pledged from counterparties as collateral⁽³⁾			(30,253)		(1,781)
Net credit exposure			$	1,033	$	6,341

Margin account related to exchange-traded futures⁽²⁾			$	11,379	$	16,285

(1)		Consists of U.S. Treasury securities, included in other invested assets.
(2)		Included in cash and cash equivalents
(3)		Consists of U.S. Treasury securities.