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Investments (Tables)
 3 Months Ended
Mar. 31, 2013
Investments [Abstract]  
Realized Gain (Loss) on Investments [Table Text Block]
Realized gains and losses on sales are determined on the basis of specific identification of investments based on the trade date. Net realized gains (losses) on investments, excluding net OTTI losses for the three months ended March 31, 2013 and 2012 are as follows:
 
Three Months Ended
March 31,
 
2013
 
2012
 
(Dollars in thousands)
Available for sale fixed maturity securities:
 
 
 
Gross realized gains
$
13,015

 
$
1,018

Gross realized losses
(2,187
)
 
(296
)
 
10,828

 
722

Equity securities:
 
 
 
Gross realized gains
—

 
562

Other investments:
 
 
 
Gain on sale of real estate
589

 
1,445

Loss on sale of real estate
(466
)
 
—

Impairment losses on real estate
—

 
(974
)
 
123

 
471

Mortgage loans on real estate:
 
 
 
Increase in allowance for credit losses
(366
)
 
(7,831
)
 
$
10,585

 
$
(6,076
)
Significant Assumptions in Determining Credit Loss Component of Other Than Temporary Impairments on Residential Mortgage Backed Scurities [Table Text Block]
The following table presents the range of significant assumptions used to determine the credit loss component of other than temporary impairments we have recognized on residential mortgage backed securities for the three months ended March 31, 2013 and 2012, which are all senior level tranches within the structure of the securities:
 
 
 
 
Discount Rate
 
Default Rate
 
Loss Severity
Sector
 
Vintage
 
Min
 
Max
 
Min
 
Max
 
Min
 
Max
Three months ended March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prime
 
2003
 
5.1
%
 
5.1
%
 
2
%
 
2
%
 
30
%
 
30
%
 
 
2005
 
6.5
%
 
7.7
%
 
8
%
 
17
%
 
50
%
 
50
%
 
 
2006
 
6.0
%
 
6.9
%
 
9
%
 
16
%
 
50
%
 
50
%
 
 
2007
 
6.5
%
 
6.7
%
 
14
%
 
25
%
 
40
%
 
60
%
 
 
2008
 
6.6
%
 
6.6
%
 
16
%
 
16
%
 
45
%
 
45
%
Alt-A
 
2005
 
5.6
%
 
8.7
%
 
15
%
 
25
%
 
5
%
 
65
%
 
 
2007
 
6.2
%
 
6.9
%
 
38
%
 
52
%
 
60
%
 
65
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prime
 
2005
 
7.5
%
 
7.5
%
 
13
%
 
13
%
 
50
%
 
50
%
 
 
2006
 
6.9
%
 
7.4
%
 
19
%
 
19
%
 
50
%
 
55
%
 
 
2007
 
6.4
%
 
7.3
%
 
15
%
 
38
%
 
50
%
 
60
%
Alt-A
 
2005
 
6.4
%
 
7.4
%
 
14
%
 
27
%
 
5
%
 
50
%
 
 
2006
 
6.0
%
 
6.0
%
 
46
%
 
46
%
 
55
%
 
55
%
 
 
2007
 
6.6
%
 
7.0
%
 
42
%
 
55
%
 
55
%
 
60
%
Unrealized Gain (Loss) on Investments [Table Text Block]
Changes in net unrealized gains on investments for the three months ended March 31, 2013 and 2012 are as follows:
 
Three Months Ended
March 31,
 
2013
 
2012
 
(Dollars in thousands)
Fixed maturity securities held for investment carried at amortized cost
$
611

 
$
10,189

Investments carried at fair value:
 
 
 
Fixed maturity securities, available for sale
$
(119,070
)
 
$
(215,088
)
Equity securities, available for sale
2,219

 
4,424

 
(116,851
)
 
(210,664
)
Adjustment for effect on other balance sheet accounts:
 
 
 
Deferred policy acquisition costs and deferred sales inducements
78,168

 
136,078

Deferred income tax asset/liability
13,539

 
26,104

 
91,707

 
162,182

Change in net unrealized gains on investments carried at fair value
$
(25,144
)
 
$
(48,482
)
Schedule of Unrealized Loss on Investments [Table Text Block]
The following tables show our investments' gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities (consisting of 211 and 198 securities, respectively) have been in a continuous unrealized loss position, at March 31, 2013 and December 31, 2012:
 
Less than 12 months
 
12 months or more
 
Total
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
(Dollars in thousands)
March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
 
 
 
 
United States Government sponsored agencies
$
874,724

 
$
(3,887
)
 
$
—

 
$
—

 
$
874,724

 
$
(3,887
)
United States municipalities, states and territories
62,810

 
(836
)
 
—

 
—

 
62,810

 
(836
)
Foreign government obligations
14,270

 
(216
)
 
—

 
—

 
14,270

 
(216
)
Corporate securities:
 
 
 
 
 
 
 
 
 
 
 
Finance, insurance and real estate
379,876

 
(7,483
)
 
68,378

 
(6,127
)
 
448,254

 
(13,610
)
Manufacturing, construction and mining
622,394

 
(13,677
)
 
11,980

 
(1,896
)
 
634,374

 
(15,573
)
Utilities and related sectors
362,337

 
(10,870
)
 
39,887

 
(3,533
)
 
402,224

 
(14,403
)
Wholesale/retail trade
95,328

 
(1,586
)
 
10,263

 
(193
)
 
105,591

 
(1,779
)
Services, media and other
370,926

 
(5,222
)
 
—

 
—

 
370,926

 
(5,222
)
Residential mortgage backed securities
62,181

 
(2,251
)
 
92,736

 
(3,759
)
 
154,917

 
(6,010
)
Commercial mortgage backed securities
216,149

 
(3,136
)
 
—

 
—

 
216,149

 
(3,136
)
Other asset backed securities
167,487

 
(3,598
)
 
24,008

 
(2,200
)
 
191,495

 
(5,798
)
 
$
3,228,482

 
$
(52,762
)
 
$
247,252

 
$
(17,708
)
 
$
3,475,734

 
$
(70,470
)
Held for investment:
 
 
 
 
 
 
 
 
 
 
 
Corporate security:
 
 
 
 
 
 
 
 
 
 
 
Insurance
$
—

 
$
—

 
$
62,173

 
$
(13,956
)
 
$
62,173

 
$
(13,956
)
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
 
 
 
 
United States Government sponsored agencies
$
973,728

 
$
(3,468
)
 
$
—

 
$
—

 
$
973,728

 
$
(3,468
)
United States municipalities, states and territories
24,393

 
(125
)
 
—

 
—

 
24,393

 
(125
)
Corporate securities:
 
 
 
 
 
 
 
 
 
 
 
Finance, insurance and real estate
177,962

 
(4,126
)
 
85,709

 
(8,438
)
 
263,671

 
(12,564
)
Manufacturing, construction and mining
426,120

 
(4,303
)
 
21,975

 
(1,281
)
 
448,095

 
(5,584
)
Utilities and related sectors
221,044

 
(5,187
)
 
39,224

 
(4,212
)
 
260,268

 
(9,399
)
Wholesale/retail trade
101,790

 
(784
)
 
10,250

 
(208
)
 
112,040

 
(992
)
Services, media and other
264,421

 
(3,085
)
 
—

 
—

 
264,421

 
(3,085
)
Residential mortgage backed securities
220,622

 
(8,679
)
 
260,226

 
(19,049
)
 
480,848

 
(27,728
)
Commercial mortgage backed securities
161,582

 
(1,983
)
 
—

 
—

 
161,582

 
(1,983
)
Other asset backed securities
145,238

 
(2,242
)
 
26,131

 
(731
)
 
171,369

 
(2,973
)
 
$
2,716,900

 
$
(33,982
)
 
$
443,515

 
$
(33,919
)
 
$
3,160,415

 
$
(67,901
)
Held for investment:
 
 
 
 
 
 
 
 
 
 
 
Corporate security:
 
 
 
 
 
 
 
 
 
 
 
Insurance
$
—

 
$
—

 
$
61,521

 
$
(14,567
)
 
$
61,521

 
$
(14,567
)
 


 


 


 


 


 


Equity security, available for sale:
 
 
 
 
 
 
 
 
 
 
 
Services
$
—

 
$
—

 
$
8,722

 
$
(1,403
)
 
$
8,722

 
$
(1,403
)
Schedule of Credit Quality of Fixed Maturity Security Portfolio by NAIC Designatio [Table Text Block]
The following table summarizes the credit quality, as determined by NAIC designation, of our fixed maturity portfolio as of the dates indicated:
 
 
March 31, 2013
 
December 31, 2012
NAIC
Designation
 
Amortized Cost

 
Fair Value
 
Amortized Cost
 
Fair Value
 
 
(Dollars in thousands)
1
 
$
14,659,495

 
$
16,121,041

 
$
13,737,381

 
$
15,250,560

2
 
8,457,623

 
9,087,432

 
7,838,186

 
8,533,121

3
 
419,163

 
408,178

 
398,294

 
387,222

4
 
50,789

 
53,006

 
53,879

 
56,151

5
 
—

 
—

 
—

 
—

6
 
2,238

 
1,734

 
5,375

 
6,603

 
 
$
23,589,308

 
$
25,671,391

 
$
22,033,115

 
$
24,233,657
Investments Classified by Contractual Maturity Date [Table Text Block]
The amortized cost and fair value of fixed maturity securities at March 31, 2013, by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. All of our mortgage and other asset backed securities provide for periodic payments throughout their lives and are shown below as separate lines.
 
Available for sale
 
Held for investment
 
Amortized
Cost
 
Fair Value
 
Amortized
Cost
 
Fair Value
 
(Dollars in thousands)
Due in one year or less
$
100,860

 
$
105,574

 
$
—

 
$
—

Due after one year through five years
737,142

 
833,797

 
—

 
—

Due after five years through ten years
5,706,584

 
6,093,251

 
—

 
—

Due after ten years through twenty years
5,804,473

 
6,322,926

 
—

 
—

Due after twenty years
6,953,594

 
7,815,035

 
76,129

 
62,173

 
19,302,653

 
21,170,583

 
76,129

 
62,173

Residential mortgage backed securities
2,488,435

 
2,668,454

 
—

 
—

Commercial mortgage backed securities
742,965

 
748,601

 
—

 
—

Other asset backed securities
979,126

 
1,021,580

 
—

 
—

 
$
23,513,179

 
$
25,609,218

 
$
76,129

 
$
62,173
Schedule of Available for Sale and Held for Investment Securites Reconciliation [Table Text Block]
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
(Dollars in thousands)
March 31, 2013
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
United States Government full faith and credit
$
4,091

 
$
525

 
$
—

 
$
4,616

United States Government sponsored agencies
1,853,618

 
7,646

 
(3,887
)
 
1,857,377

United States municipalities, states and territories
3,191,793

 
466,207

 
(836
)
 
3,657,164

Foreign government obligations
86,102

 
14,574

 
(216
)
 
100,460

Corporate securities
14,167,049

 
1,434,504

 
(50,587
)
 
15,550,966

Residential mortgage backed securities
2,488,435

 
186,029

 
(6,010
)
 
2,668,454

Commercial mortgage backed securities
742,965

 
8,772

 
(3,136
)
 
748,601

Other asset backed securities
979,126

 
48,252

 
(5,798
)
 
1,021,580

 
$
23,513,179

 
$
2,166,509

 
$
(70,470
)
 
$
25,609,218

Held for investment:
 
 
 
 
 
 
 
Corporate security
$
76,129

 
$
—

 
$
(13,956
)
 
$
62,173

 
 
 
 
 
 
 
 
Equity securities, available for sale:
 
 
 
 
 
 
 
Finance, insurance, and real estate
$
44,172

 
$
11,043

 
$
—

 
$
55,215

 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
United States Government full faith and credit
$
4,590

 
$
564

 
$
—

 
$
5,154

United States Government sponsored agencies
1,763,789

 
11,704

 
(3,468
)
 
1,772,025

United States municipalities, states and territories
3,116,678

 
461,770

 
(125
)
 
3,578,323

Foreign government obligations
86,099

 
19,160

 
—

 
105,259

Corporate securities
12,930,173

 
1,568,223

 
(31,624
)
 
14,466,772

Residential mortgage backed securities
2,743,537

 
172,304

 
(27,728
)
 
2,888,113

Commercial mortgage backed securities
354,870

 
5,095

 
(1,983
)
 
357,982

Other asset backed securities
957,291

 
44,190

 
(2,973
)
 
998,508

 
$
21,957,027

 
$
2,283,010

 
$
(67,901
)
 
$
24,172,136

Held for investment:
 
 
 
 
 
 
 
Corporate security
76,088

 
—

 
(14,567
)
 
61,521

 
 
 
 
 
 
 
 
Equity securities, available for sale:
 
 
 
 
 
 
 
Finance, insurance, and real estate
$
44,598

 
$
10,227

 
$
(1,403
)
 
$
53,422
Schedule of Components of Net Unrealized Gain/(Loss) on Availabe-for-sale Fixed Maturity and Equity Securities Reported as Seperate Component of Stockholders' Equity [Table Text Block]
Net unrealized gains on available for sale fixed maturity securities and equity securities reported as a separate component of stockholders' equity were comprised of the following:
 
March 31,
2013
 
December 31,
2012
 
(Dollars in thousands)
Net unrealized gains on available for sale fixed maturity securities and equity securities
$
2,107,082

 
$
2,223,933

Adjustments for assumed changes in amortization of deferred policy acquisition costs and deferred sales inducements
(1,123,806
)
 
(1,201,974
)
Deferred income tax valuation allowance reversal
22,534

 
22,534

Deferred income tax benefit
(344,147
)
 
(357,686
)
Net unrealized gains reported as accumulated other comprehensive income
$
661,663

 
$
686,807
Other Than Temporary Impairment by Asset Type [Table Text Block]
The following table summarizes other than temporary impairments for the three months ended March 31, 2013 and 2012, by asset type:
 
Number
of
Securities

 
Total OTTI
Losses

 
Portion of OTTI Losses Recognized from Other Comprehensive Income
 
Net OTTI Losses
Recognized in Operations

 
 
 
(Dollars in thousands)
Three months ended March 31, 2013
 
 
 
 
 
 
 
Fixed maturity securities, available for sale:
 
 
 
 
 
 
 
Corporate securities:
 
 
 
 
 
 
 
Industrial
1

 
$
(1,761
)
 
$
—

 
$
(1,761
)
Residential mortgage backed securities
5

 
—

 
(1,048
)
 
(1,048
)
Equity security, available for sale:
 
 
 
 
 
 
 
Industrial
1

 
(428
)
 
—

 
(428
)
 
7

 
$
(2,189
)
 
$
(1,048
)
 
$
(3,237
)
 
 
 
 
 
 
 
 
Three months ended March 31, 2012
 
 
 
 
 
 
 
Fixed maturity securities, available for sale:
 
 
 
 
 
 
 
Residential mortgage backed securities
20

 
$
(1,781
)
 
$
(1,100
)
 
$
(2,881
)
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block]
The cumulative portion of other than temporary impairments determined to be credit losses which have been recognized in operations for debt securities are summarized as follows:
 
Three Months Ended
March 31,
 
2013
 
2012
 
(Dollars in thousands)
Cumulative credit loss at beginning of period
$
(134,027
)
 
$
(119,095
)
Credit losses on securities for which OTTI has not previously been recognized
(1,761
)
 
—

Additional credit losses on securities for which OTTI has previously been recognized
(1,048
)
 
(2,881
)
Accumulated losses on securities that were disposed of during the period
7,023

 
—

Cumulative credit loss at end of period
$
(129,813
)
 
$
(121,976
)
Schedule of Temporary Impairment Losses, Investments [Table Text Block]
The following table summarizes the cumulative noncredit portion of OTTI and the change in fair value since recognition of OTTI, both of which were recognized in other comprehensive income, by major type of security, for securities that are part of our investment portfolio at March 31, 2013 and December 31, 2012:
 
Amortized Cost
 
OTTI
Recognized in
Other
Comprehensive
Income
 
Change in Fair
Value Since
OTTI was
Recognized
 
Fair Value
 
(Dollars in thousands)
March 31, 2013
 
 
 
 
 
 
 
Fixed maturity securities, available for sale:
 
 
 
 
 
 
 
Corporate securities
$
19,092

 
$
(2,151
)
 
$
3,780

 
$
20,721

Residential mortgage backed securities
812,735

 
(176,557
)
 
219,822

 
856,000

Equity securities, available for sale:
 
 
 
 
 
 
 
Finance, insurance and real estate and services
19,673

 
—

 
10,167

 
29,840

 
$
851,500

 
$
(178,708
)
 
$
233,769

 
$
906,561

December 31, 2012
 
 
 
 
 
 
 
Fixed maturity securities, available for sale:
 
 
 
 
 
 
 
Corporate securities
$
10,599

 
$
(2,151
)
 
$
5,676

 
$
14,124

Residential mortgage backed securities
855,915

 
(177,604
)
 
171,514

 
849,825

Equity securities, available for sale:
 
 
 
 
 
 
 
Finance, insurance and real estate
9,976

 
—

 
9,668

 
19,644

 
$
876,490

 
$
(179,755
)
 
$
186,858

 
$
883,593