SIGNIFICANT ACQUISITIONS

6 Months Ended

Jun. 30, 2012

SIGNIFICANT ACQUISITIONS

SIGNIFICANT ACQUISITIONS

3.             SIGNIFICANT ACQUISITIONS

On April 29, 2011, the Company closed a previously announced and unrelated reinsurance transaction with Liberty Life Insurance Company (“Liberty Life”) under the terms of which the Company reinsured substantially all of the life and health business of Liberty Life. The transaction closed in conjunction with Athene Holding Ltd’s acquisition of Liberty Life from an affiliate of Royal Bank of Canada. The capital invested by the Company in the transaction at closing was $321 million, including a $225 million ceding commission. In conjunction with the closing, the Company invested $40 million in a surplus note issued by Athene Life Re. The Company accounted for this transaction in a manner consistent with the purchase method of accounting as required by the Financial Accounting Standards Board (“FASB”) guidance under the ASC Business Combinations topic. This guidance requires that the total consideration paid be allocated to the assets acquired and liabilities assumed based on their fair values at the transaction date.

The following (unaudited) pro forma condensed consolidated results of operations assumes that the aforementioned transaction with Liberty Life was completed as of January 1, 2010:

	For The		For The
	Three Months Ended		Six Months Ended
	June 30, 2011		June 30, 2011
	(Dollars In Thousands)
Revenue	$	887,017	$	1,750,231
Net income	$	92,246	$	154,760