INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAXES

Schedule of reconciliation of effective income tax rate related to continuing operations

	For The Year Ended December 31,
	2012		2011		2010
Statutory federal income tax rate applied to pre-tax income	35.0	%	35.0	%	35.0	%
State income taxes	0.4		0.4		0.5
Investment income not subject to tax	(3.1	)	(2.0	)	(1.4	)
Uncertain tax positions	0.2		(0.1	)	(0.9	)
Other	0.4		(1.2	)	0.1
	32.9	%	32.1	%	33.3	%

Schedule of components of income tax

	For The Year Ended December 31,
	2012		2011			2010
	(Dollars In Thousands)
Income tax expense per the income tax returns:
Federal	$	78,510	$	(4,609	)	$	3,600
State	2,496		33			2,944
Total current	$	81,006	$	(4,576	)	$	6,544
Deferred income tax expense:
Federal	$	66,375	$	153,412		$	104,608
State	3,662		2,683			(1,287		)
Total deferred	$	70,037	$	156,095		$	103,321

Schedule of components of the Company's net deferred income tax liability

	As of December 31,
	2012			2011
	(Dollars In Thousands)
Deferred income tax assets:
Premium receivables and policy liabilities	$	51,276		$	35,267
Intercompany losses	45,079			42,685
Invested assets (other than unrealized gains)	—			68,530
Deferred compensation	3,750			3,059
State tax valuation allowance	(2,552		)	(2,440		)
Other	26,604			454
	124,157			147,555
Deferred income tax liabilities:
Deferred policy acquisition costs and value of business acquired	911,858			873,979
Invested assets (other than realized gains)	20,936			—
Unrealized gain on investments	975,076			567,572
	1,907,870			1,441,551
Net deferred income tax (liability) asset	$	(1,783,713	)	$	(1,293,996	)

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits

	As of December 31,
	2012			2011
	(Dollars In Thousands)
Balance, beginning of period	$	4,318		$	12,659
Additions for tax positions of the current year	9,465			—
Additions for tax positions of prior years	64,050			106
Reductions of tax positions of prior years:
Changes in judgment	(3,498		)	(8,447		)
Settlements during the period	—			—
Lapses of applicable statute of limitations	—			—
Balance, end of period	$	74,335		$	4,318