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

9 Months Ended

Sep. 30, 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 September 30, 2013 and December 31, 2012 are summarized below (dollars in thousands):



September 30, 2013:				Fair Value Measurements Using:
	Total			Level 1		Level 2			Level 3
Assets:
Fixed maturity securities – available-for-sale:
Corporate securities	$	11,934,562		$	58,111	$	10,356,155		$	1,520,296
Canadian and Canadian provincial governments	3,491,156			—		3,491,156			—
Residential mortgage-backed securities	951,838			—		818,567			133,271
Asset-backed securities	885,278			—		457,198			428,080
Commercial mortgage-backed securities	1,453,114			—		1,328,173			124,941
U.S. government and agencies securities	430,847			362,269		65,156			3,422
State and political subdivision securities	297,729			—		253,688			44,041
Other foreign government supranational and foreign government-sponsored enterprises	1,844,584			302,997		1,514,427			27,160
Total fixed maturity securities – available-for-sale	21,289,108			723,377		18,284,520			2,281,211
Funds withheld at interest – embedded derivatives	(175,933		)	—		—			(175,933		)
Cash equivalents	671,999			671,999		—			—
Short-term investments	19,436			12,761		6,675			—
Other invested assets:
Non-redeemable preferred stock	82,839			75,279		2,735			4,825
Other equity securities	64,071			64,071		—			—
Derivatives:
Interest rate swaps	29,102			—		29,102			—
Interest rate options	5,699			—		5,699			—
Foreign currency forwards	—			—		—			—
CPI swaps	112			—		112			—
Credit default swaps	1,764			—		1,764			—
Equity options	43,482			—		43,482			—
Foreign currency swaps	7,262			—		7,262			—
Other	15,514			15,514		—			—
Total other invested assets	249,845			154,864		90,156			4,825
Total	$	22,054,455		$	1,563,001	$	18,381,351		$	2,110,103
Liabilities:
Interest sensitive contract liabilities – embedded derivatives	$	825,899		$	—	$	—		$	825,899
Other liabilities:
Derivatives:
Interest rate swaps	2,286			—		2,286			—
Foreign currency forwards	8,928			—		8,928			—
Credit default swaps	(170		)	—		(170		)	—
Equity options	(139		)	—		(139		)	—
Foreign currency swaps	2,243			—		2,243			—
Total	$	839,047		$	—	$	13,148		$	825,899



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 developed by the Company, which does not include unobservable Level 3 asset and liability measurements provided by third parties, as of September 30, 2013 and December 31, 2012 (dollars in thousands):



September 30, 2013:				Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
September 30, 2013:	Fair Value			Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
State and political subdivision securities	$	5,032		Market comparable securities	Liquidity premium	1	%
Corporate securities	366,372			Market comparable securities	Liquidity premium	0-2% (1%)
Funds withheld at interest- embedded derivatives	(175,933		)	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	760,746			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	65,153			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% (13%)

December 31, 2012:

Fair Value

Valuation Technique(s)

Unobservable Input

Range (Weighted Average)

Assets:

State and political subdivision securities

5,451

Market comparable securities

Liquidity premium

Corporate securities

450,177

Market comparable securities

Liquidity premium

0-2% (1%)

Short-term investments

22,031

Market comparable securities

Liquidity premium

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 three and nine months ended September 30, 2013 and 2012 (dollars in thousands):



	Three months ended September 30,
	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	$	—	$	—	$	11,777	$	—
Other foreign government, supranational and foreign government-sponsored enterprises	—		—		2,163		—
Total fixed maturity securities	—		—		13,940		—
Non-redeemable preferred stock	—		—		9,646		11,068
Total	$	—	$	—	$	23,586	$	11,068


	Nine months ended September 30,
	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	$	—	$	14,012	$	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	—		14,012		30,789		11,156
Non-redeemable preferred stock	—		—		9,646		11,068
Total	$	—	$	14,012	$	40,435	$	22,224

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



For the three months ended September 30, 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
Fair value, beginning of period	$	994,014		$	49,591		$	128,358		$	115,733		$	—		$	14,486
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	(4,846		)	114			54			446			(59		)	1
Investment related gains (losses), net	(1,059		)	(187		)	(3		)	(2,088		)	—			(4		)
Claims & other policy benefits	—			—			—			—			—			—
Interest credited	—			—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—			—
Included in other comprehensive income	22,280			479			7,658			6,188			(15		)	3,433
Purchases ⁽¹⁾	556,031			31,020			62,109			21,092			4,640			—
Sales⁽¹⁾	(18,548		)	(24,566		)	(3,725		)	—			—			—
Settlements⁽¹⁾	(31,448		)	(1,437		)	(4,407		)	(511		)	—			(116		)
Transfers into Level 3	1,293			1,804			5,006			26,208			—			29,150
Transfers out of Level 3	(10,444		)	(7,459		)	(5,460		)	—			—			—
Fair value, end of period	$	1,507,273		$	49,359		$	189,590		$	167,068		$	4,566		$	46,950
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	$	(4,861	)	$	28		$	40		$	446		$	(59	)	$	1
Investment related gains (losses), net	(223		)	—			(242		)	(2,088		)	—			—
Claims & other policy benefits	—			—			—			—			—			—
Interest credited	—			—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—			—



For the three months ended September 30, 2012 (continued):	Funds withheld at interest- embedded derivatives			Short-term investments			Other invested assets- other equity securities			Reinsurance ceded receivable- embedded derivatives			Interest sensitive contract liabilities embedded derivatives
Fair value, beginning of period	$	(375,337	)	$	—		$	3,227		$	4,416		$	(938,927	)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	—			(7		)	—			—			—
Investment related gains (losses), net	54,836			—			—			—			2,579
Claims & other policy benefits	—			—			—			—			213
Interest credited	—			—			—			—			(33,980		)
Policy acquisition costs and other insurance expenses	—			—			—			(124		)	—
Included in other comprehensive income	—			54			—			—			—
Purchases⁽¹⁾	—			22,014			—			—			(8,502		)
Sales⁽¹⁾	—			—			—			—			—
Settlements⁽¹⁾	—			—			—			(100		)	24,813
Transfers into Level 3	—			—			—			—			—
Transfers out of Level 3	—			—			(3,227		)	—			—
Fair value, end of period	$	(320,501	)	$	22,061		$	—		$	4,192		$	(953,804	)
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	)	$	—		$	—		$	—
Investment related gains (losses), net	54,836			—			—			—			427
Claims & other policy benefits	—			—			—			—			(23		)
Interest credited	—			—			—			—			(58,621		)
Policy acquisition costs and other insurance expenses	—			—			—			13			—



For the nine months ended September 30, 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
Fair value, beginning of period	$	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	(4,738		)	413			497			1,579			(59		)	5
Investment related gains (losses), net	(2,339		)	(223		)	(510		)	(13,771		)	—			(12		)
Claims & other policy benefits	—			—			—			—			—			—
Interest credited	—			—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—			—
Included in other comprehensive income	31,940			1,886			16,135			17,436			(15		)	4,666
Purchases ⁽¹⁾	645,466			31,602			64,121			21,092			4,640			—
Sales⁽¹⁾	(45,833		)	(40,790		)	(11,627		)	(1,552		)	—			—
Settlements⁽¹⁾	(84,819		)	(5,139		)	(11,510		)	(568		)	—			(162		)
Transfers into Level 3	18,738			8,979			6,086			37,054			—			37,588
Transfers out of Level 3	(25,311		)	(29,024		)	(67,094		)	(10,178		)	—			(5,508		)
Fair value, end of period	$	1,507,273		$	49,359		$	189,590		$	167,068		$	4,566		$	46,950
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	$	(4,747	)	$	283		$	440		$	1,579		$	(59	)	$	5
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 nine months ended September 30, 2012 (continued):	Funds withheld at interest- embedded derivatives			Short-term investments			Other invested assets- other equity securities			Reinsurance ceded receivable-embedded derivatives			Interest sensitive contract liabilities embedded derivatives
Fair value, beginning of period	$	(361,456	)	$	—		$	11,489		$	4,945		$	(1,028,241	)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	—			(7		)	—			—			—
Investment related gains (losses), net	40,955			—			1,098			—			74,025
Claims & other policy benefits	—			—			—			—			770
Interest credited	—			—			—			—			(27,348		)
Policy acquisition costs and other insurance expenses	—			—			—			(449		)	—
Included in other comprehensive income	—			54			843			—			—
Purchases⁽¹⁾	—			22,014			108			—			(48,199		)
Sales⁽¹⁾	—			—			(3,788		)	—			—
Settlements⁽¹⁾	—			—			—			(304		)	75,189
Transfers into Level 3	—			—			—			—			—
Transfers out of Level 3	—			—			(9,750		)	—			—
Fair value, end of period	$	(320,501	)	$	22,061		$	—		$	4,192		$	(953,804	)
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	)	$	—		$	—		$	—
Investment related gains (losses), net	40,955			—			(183		)	—			68,315
Claims & other policy benefits	—			—			—			—			56
Interest credited	—			—			—			—			(102,017		)
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 three and nine months ended September 30, 2013, as well as the portion of gains or losses included in income for the three and nine months ended September 30, 2013 attributable to unrealized gains or losses related to those assets and liabilities still held at September 30, 2013 (dollars in thousands):



For the three months ended September 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
Fair value, beginning of period	$	1,592,005		$	140,054		$	352,606		$	180,982		$	—
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	(2,254		)	24			2,314			466			—
Investment related gains (losses), net	(924		)	(419		)	53			(6,864		)	—
Claims & other policy benefits	—			—			—			—			—
Interest credited	—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—
Included in other comprehensive income	587			122			370			8,998			(40		)
Purchases⁽¹⁾	80,644			2,623			91,675			19,420			—
Sales⁽¹⁾	(53,052		)	(1,116		)	(8,659		)	(81,253		)	—
Settlements⁽¹⁾	(90,493		)	(8,017		)	(4,812		)	(233		)	—
Transfers into Level 3	2,760			—			—			3,425			3,462
Transfers out of Level 3	(8,977		)	—			(5,467		)	—			—
Fair value, end of period	$	1,520,296		$	133,271		$	428,080		$	124,941		$	3,422
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	$	(2,096	)	$	24		$	2,314		$	301		$	—
Investment related gains (losses), net	—			—			—			(134		)	—
Claims & other policy benefits	—			—			—			—			—
Interest credited	—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—



For the three months ended September 30, 2013 (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	$	41,275		$	26,830		$	(108,473	)	$	—	$	(878,568	)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	9			(77		)	—			—		—
Investment related gains (losses), net	(4		)	—			(67,460		)	—		19,829
Claims & other policy benefits	—			—			—			—		—
Interest credited	—			—			—			—		28,378
Policy acquisition costs and other insurance expenses	—			—			—			—		—
Included in other comprehensive income	1,844			407			—			186		—
Purchases⁽¹⁾	—			—			—			—		(16,082		)
Sales⁽¹⁾	—			—			—			—		—
Settlements⁽¹⁾	(62		)	—			—			—		20,544
Transfers into Level 3	979			—			—			4,639		—
Transfers out of Level 3	—			—			—			—		—
Fair value, end of period	$	44,041		$	27,160		$	(175,933	)	$	4,825	$	(825,899	)
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	$	9		$	(77	)	$	—		$	—	$	—
Investment related gains (losses), net	—			—			(67,460		)	—		19,326
Claims & other policy benefits	—			—			—			—		—
Interest credited	—			—			—			—		7,834
Policy acquisition costs and other insurance expenses	—			—			—			—		—



For the nine months ended September 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	(6,594		)	18			4,719			1,548			—			27
Investment related gains (losses), net	(1,837		)	(394		)	(1,468		)	(16,726		)	—			(12		)
Claims & other policy benefits	—			—			—			—			—			—
Interest credited	—			—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—			—
Included in other comprehensive income	(36,123		)	(78		)	15,007			36,943			(40		)	204
Purchases⁽¹⁾	256,006			54,543			220,098			19,420			—			—
Sales⁽¹⁾	(109,123		)	(3,733		)	(24,951		)	(83,974		)	—			—
Settlements⁽¹⁾	(236,392		)	(20,307		)	(16,248		)	(2,701		)	—			(369		)
Transfers into Level 3	10,906			14,631			8,305			3,425			3,462			979
Transfers out of Level 3	(25,110		)	(5,340		)	(9,773		)	—			(4,538		)	—
Fair value, end of period	$	1,520,296		$	133,271		$	428,080		$	124,941		$	3,422		$	44,041
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	$	(6,313	)	$	17		$	4,711		$	1,382		$	—		$	27
Investment related gains (losses), net	(202		)	—			—			(10,243		)	—			—
Claims & other policy benefits	—			—			—			—			—			—
Interest credited	—			—			—			—			—			—
Policy acquisition costs and other insurance expenses	—			—			—			—			—			—



For the nine months ended September 30, 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 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	(227		)	—			(3		)	—		—
Investment related gains (losses), net	—			67,244			—			—		106,952
Claims & other policy benefits	—			—			—			—		—
Interest credited	—			—			—			—		(32,637		)
Policy acquisition costs and other insurance expenses	—			—			—			—		—
Included in other comprehensive income	(893		)	—			(28		)	186		—
Purchases⁽¹⁾	—			—			—			—		(44,707		)
Sales⁽¹⁾	—			—			—			—		—
Settlements⁽¹⁾	—			—			(22,000		)	—		56,854
Transfers into Level 3	—			—			—			4,639		—
Transfers out of Level 3	—			—			—			—		—
Fair value, end of period	$	27,160		$	(175,933	)	$	—		$	4,825	$	(825,899	)
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	$	(227	)	$	—		$	(4	)	$	—	$	—
Investment related gains (losses), net	—			67,244			—			—		104,237
Claims & other policy benefits	—			—			—			—		—
Interest credited	—			—			—			—		(89,491		)
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]



	Three months ended September 30,
(dollars in thousands)	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⁾	$	13,528	$	13,575	$	47		$	25,092	$	23,467	$	(1,625	)
Limited partnership interests⁽²⁾	—		—		—			23,012		15,558		(7,454		)

	Nine months ended September 30,
	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⁾	$	13,436	$	13,575	$	139		$	27,836	$	23,467	$	(4,369	)
Limited partnership interests⁽²⁾	11,590		9,161		(2,429		)	25,191		16,944		(8,247		)
Real estate⁽³⁾	4,736		4,136		(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 investments 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 investment - 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 [Text Block]



September 30, 2013	Carrying Value		Estimated Fair Value		Fair Value Measurement Using:
September 30, 2013	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Assets:
Mortgage loans on real estate	$	2,488,582	$	2,515,250	$	—	$	—	$	2,515,250
Policy loans	1,244,878		1,244,878		—		1,244,878		—
Funds withheld at interest⁽¹⁾	5,917,002		6,144,891		—		—		6,144,891
Cash and cash equivalents⁽²⁾	751,236		751,236		751,236		—		—
Short-term investments⁽²⁾	24,756		24,756		24,756		—		—
Other invested assets⁽²⁾	652,759		694,909		4,956		31,436		658,517
Accrued investment income	262,330		262,330		—		262,330		—
Liabilities:
Interest-sensitive contract liabilities⁽¹⁾	$	11,104,386	$	10,923,043	$	—	$	—	$	10,923,043
Long-term debt	2,214,170		2,348,049		—		—		2,348,049
Collateral finance facility	484,712		365,307		—		—		365,307

December 31, 2012:	Carrying Value		Estimated Fair Value		Fair Value Measurement Using:
December 31, 2012:	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
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 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.