Income Taxes Income Tax (Tables)

12 Months Ended

Dec. 31, 2012

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

Our income tax expense as presented in the consolidated financial statements is summarized as follows:



	Year Ended December 31,
	2012			2011			2010
	(Dollars in thousands)
Consolidated statements of operations:
Current income taxes	$	80,527		$	127,535		$	140,381
Deferred income taxes (benefits)	(52,336		)	(80,869		)	(118,048		)
Total income tax expense included in consolidated statements of operations	28,191			46,666			22,333
Stockholders' equity:
Expense (benefit) relating to:
Change in net unrealized investment losses	123,620			202,143			60,456
Share-based compensation	(392		)	(1,061		)	(480		)
Total income tax expense included in consolidated financial statements	$	151,419		$	247,748		$	82,309

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

Income tax expense in the consolidated statements of operations differed from the amount computed at the applicable statutory federal income tax rate of 35% as follows:



	Year Ended December 31,
	2012			2011			2010
	(Dollars in thousands)
Income before income taxes	$	85,989		$	132,914		$	65,266

Income tax expense on income before income taxes	$	30,096		$	46,520		$	22,843
Tax effect of:
Tax exempt net investment income	(1,876		)	—			—
Other	(29		)	146			(510		)
Income tax expense	$	28,191		$	46,666		$	22,333
Effective tax rate	32.8		%	35.1		%	34.2		%

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

Deferred income tax assets or liabilities are established for temporary differences between the financial reporting amounts and tax bases of assets and liabilities that will result in deductible or taxable amounts, respectively, in future years. The tax effects of temporary differences that give rise to the deferred tax assets and liabilities at December 31, 2012 and 2011, are as follows:



	December 31,
	2012			2011
	(Dollars in thousands)
Deferred income tax assets:
Policy benefit reserves	$	1,698,831		$	1,472,653
Other than temporary impairments	8,177			9,072
Derivative instruments	—			21,429
Other policyholder funds	10,860			9,946
Litigation settlement accrual	7,351			—
Deferred compensation	14,659			15,576
Net operating loss carryforwards	16,783			14,818
Other	7,192			6,351
Gross deferred tax assets	1,763,853			1,549,845
Deferred income tax liabilities:
Deferred policy acquisition costs and deferred sales inducements	(1,425,266		)	(1,266,042		)
Net unrealized gains on available for sale fixed maturity and equity securities	(357,686		)	(234,066		)
Convertible senior notes	(6,665		)	(10,917		)
Derivative instruments	(18,280		)	—
Investment income items	(2,588		)	(4,315		)
Other	(2,671		)	(12,524		)
Gross deferred tax liabilities	(1,813,156		)	(1,527,864		)
Net deferred income tax (liability) asset	$	(49,303	)	$	21,981