DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED (Tables)

9 Months Ended

Sep. 30, 2012

DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED

Schedule of the effect of the adjustments on the company's balance sheet due to adoption of ASU No. 2010-26

	As of December 31, 2011
	As originally reported		As adjusted		Effect of Change
	(Dollars In Thousands)
Assets:
Deferred policy acquisition costs and value of business acquired	$	4,011,936	$	3,223,220	$	(788,716	)
Total Assets	$	52,791,899	$	52,003,183	$	(788,716	)
Liabilities:
Deferred income taxes	$	1,573,764	$	1,293,996	$	(279,768	)
Total liabilities	$	47,405,601	$	47,125,833	$	(279,768	)
Equity:
Retained earnings	$	2,984,466	$	2,456,293	$	(528,173	)
Accumulated other comprehensive income (loss):
Net unrealized gain (losses) on investments, net of income tax	1,076,854		1,096,079		19,225
Total Equity	$	5,386,298	$	4,877,350	$	(508,948	)
Total liabilities and shareowner’s equity	$	52,791,899	$	52,003,183	$	(788,716	)

Schedule of the effect of the adjustments on the company's income statement due to adoption of ASU No. 2010-26

	For The Three Months Ended September 30, 2011
	As originally reported		As adjusted		Effect of Change
	(Dollars In Thousands)
Expenses:
Amortization of deferred policy acquisition costs and value of business acquired	$	80,050	$	68,008	$	(12,042	)
Other operating expenses	97,417		118,376		20,959
Total benefits and expenses	767,024		775,941		8,917
Income before income tax	131,475		122,558		(8,917		)
Income tax (benefit) expense	42,739		39,579		(3,160		)
Net income	$	88,736	$	82,979	$	(5,757	)

	For The Nine Months Ended September 30, 2011
	As originally reported		As adjusted		Effect of Change
	(Dollars In Thousands)
Expenses:
Amortization of deferred policy acquisition costs and value of business acquired	$	225,671	$	190,522	$	(35,149	)
Other operating expenses	279,370		345,251		65,881
Total benefits and expenses	2,177,108		2,207,840		30,732
Income before income tax	388,793		358,061		(30,732		)
Income tax (benefit) expense	132,250		121,359		(10,891		)
Net income	$	256,543	$	236,702	$	(19,841	)

Schedule of the effect of the adjustments on the company's cash flow statement due to adoption of ASU No. 2010-26

	For The Nine Months Ended September 30, 2011
	As originally reported			As adjusted			Effect of Change
	(Dollars In Thousands)
Cash flows from operating activities
Net income	$	256,543		$	236,702		$	(19,841	)
Amortization of deferred policy acquisition costs and value of business acquired	225,671			190,522			(35,149		)
Capitalization of deferred policy acquisition costs	(353,041		)	(297,963		)	55,078
Deferred income tax	37,128			30,020			(7,108		)
Other, net	49,017			56,037			7,020
Change to net cash (used in) provided by operating activities	$	215,318		$	215,318		$	—

Schedule of balances and changes in DAC

	As of
	September 30, 2012			December 31, 2011
	(Dollars In Thousands)
Balance, beginning of period	$	2,195,080		$	2,095,157
Capitalization of commissions, sales, and issue expenses	223,481			355,900
Amortization	(92,070		)	(200,128		)
Change in unrealized investment gains and losses	(103,074		)	(55,849		)
Balance, end of period	$	2,223,417		$	2,195,080

Schedule of balances and changes in VOBA

	As of
	September 30, 2012			December 31, 2011
	(Dollars In Thousands)
Balance, beginning of period	$	1,028,140		$	968,253
Acquisitions	—			137,418
Amortization	(44,175		)	(66,163		)
Change in unrealized investment gains and losses	(16,005		)	(21,907		)
Other	—			10,539
Balance, end of period	$	967,960		$	1,028,140