INVESTMENT OPERATIONS (Tables)

3 Months Ended

Mar. 31, 2013

INVESTMENT OPERATIONS

Summary of net realized investment gains (losses) for invested assets

	For The Three Months Ended March 31,
	2013			2012
	(Dollars In Thousands)
Fixed maturities	$	12,298		$	19,678
Equity securities	1			—
Impairments on fixed maturity securities	(3,587		)	(18,572		)
Impairments on equity securities	(997		)	(24		)
Modco trading portfolio	(15,328		)	18,099
Other investments	(1,217		)	(2,294		)
Total realized gains (losses) - investments	$	(8,830	)	$	16,887

Schedule of amortized cost and fair value of the Company's investments classified as available-for-sale

			Gross		Gross					Total OTTI
	Amortized		Unrealized		Unrealized			Fair		Recognized
	Cost		Gains		Losses			Value		in OCI(1)
	(Dollars In Thousands)
2013
Fixed maturities:
Bonds
Residential mortgage-backed securities	$	1,665,681	$	89,005	$	(36,776	)	$	1,717,910	$	6,353
Commercial mortgage-backed securities	853,334		64,906		(2,085		)	916,155		—
Other asset-backed securities	1,013,575		17,325		(84,339		)	946,561		(189		)
U.S. government-related securities	1,142,772		66,003		(1,723		)	1,207,052		—
Other government-related securities	82,172		6,323		(18		)	88,477		—
States, municipals, and political subdivisions	1,179,314		254,476		(269		)	1,433,521		—
Corporate bonds	18,291,777		2,542,320		(64,212		)	20,769,885		—
	24,228,625		3,040,358		(189,422		)	27,079,561		6,164
Equity securities	345,963		14,440		(6,723		)	353,680		(243		)
Short-term investments	49,691		—		—			49,691		—
	$	24,624,279	$	3,054,798	$	(196,145	)	$	27,482,932	$	5,921
2012
Fixed maturities:
Bonds
Residential mortgage-backed securities	$	1,766,260	$	92,417	$	(19,347	)	$	1,839,330	$	(406	)
Commercial mortgage-backed securities	797,844		72,577		(598		)	869,823		—
Other asset-backed securities	1,023,649		12,788		(61,424		)	975,013		(241		)
U.S. government-related securities	1,097,501		71,536		(591		)	1,168,446		—
Other government-related securities	93,565		7,258		(45		)	100,778		—
States, municipals, and political subdivisions	1,188,019		255,898		(264		)	1,443,653		—
Corporate bonds	17,687,164		2,726,858		(48,395		)	20,365,627		(5,488		)
	23,654,002		3,239,332		(130,664		)	26,762,670		(6,135		)
Equity securities	352,272		11,881		(9,993		)	354,160		—
Short-term investments	97,852		—		—			97,852		—
	$	24,104,126	$	3,251,213	$	(140,657	)	$	27,214,682	$	(6,135	)

(1)These amounts are included in the gross unrealized gains and gross unrealized losses columns above.

Schedule of amortized cost and fair value of the Company's investments classified as held-to-maturity

			Gross		Gross				Total OTTI
	Amortized		Unrealized		Unrealized		Fair		Recognized
	Cost		Gains		Losses		Value		in OCI
	(Dollars In Thousands)
2013
Fixed maturities:
Other	$	315,000	$	19,579	$	—	$	334,579	$	—
	$	315,000	$	19,579	$	—	$	334,579	$	—
2012
Fixed maturities:
Other	$	300,000	$	19,163	$	—	$	319,163	$	—
	$	300,000	$	19,163	$	—	$	319,163	$	—

Schedule of amortized cost and fair value of available-for-sale and held-to-maturity fixed maturities, by expected maturity

	Available-for-sale				Held-to-maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(Dollars In Thousands)				(Dollars In Thousands)
Due in one year or less	$	462,439	$	469,358	$	—	$	—
Due after one year through five years	4,474,623		4,930,066		—		—
Due after five years through ten years	6,601,844		7,235,764		—		—
Due after ten years	12,689,719		14,444,373		315,000		334,579
	$	24,228,625	$	27,079,561	$	315,000	$	334,579

Schedule of credit losses on debt securities held by the Company for which a portion of an other-than-temporary impairment was recognized in other comprehensive income (loss)

	For The Three Months Ended March 31,
	2013		2012
	(Dollars In Thousands)
Beginning balance	$	121,237	$	69,476
Additions for newly impaired securities	997		15,688
Additions for previously impaired securities	1,486		2,778
Reductions for previously impaired securities due to a change in expected cash flows	—		—
Reductions for previously impaired securities that were sold in the current period	—		—
Other	—		—
Ending balance	$	123,720	$	87,942

Schedule of investments' gross unrealized losses and fair value of the Company's investments that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position

The following table includes the gross unrealized losses and fair value of the Company’s investments that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2013:

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss			Value		Loss
	(Dollars In Thousands)
Residential mortgage-backed securities	$	127,940	$	(23,734	)	$	99,519	$	(13,042	)	$	227,459	$	(36,776	)
Commercial mortgage-backed securities	112,880		(2,085		)	—		—			112,880		(2,085		)
Other asset-backed securities	74,375		(9,968		)	602,783		(74,371		)	677,158		(84,339		)
U.S. government-related securities	206,309		(1,723		)	—		—			206,309		(1,723		)
Other government-related securities	20,003		(2		)	3,617		(16		)	23,620		(18		)
States, municipalities, and political subdivisions	11,521		(269		)	—		—			11,521		(269		)
Corporate bonds	1,387,338		(44,151		)	284,166		(20,061		)	1,671,504		(64,212		)
Equities	55,317		(243		)	28,992		(6,480		)	84,309		(6,723		)
	$	1,995,683	$	(82,175	)	$	1,019,077	$	(113,970	)	$	3,014,760	$	(196,145	)

The following table includes the gross unrealized losses and fair value of the Company’s investments that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2012:

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss			Value		Loss
	(Dollars In Thousands)
Residential mortgage-backed securities	$	100,412	$	(9,578	)	$	166,000	$	(9,769	)	$	266,412	$	(19,347	)
Commercial mortgage-backed securities	50,506		(598		)	—		—			50,506		(598		)
Other asset-backed securities	479,223		(28,179		)	242,558		(33,245		)	721,781		(61,424		)
U.S. government-related securities	106,806		(591		)	—		—			106,806		(591		)
Other government-related securities	14,955		(45		)	—		—			14,955		(45		)
States, municipalities, and political subdivisions	11,526		(264		)	—		—			11,526		(264		)
Corporate bonds	775,593		(23,630		)	363,128		(24,765		)	1,138,721		(48,395		)
Equities	35,059		(5,150		)	21,754		(4,843		)	56,813		(9,993		)
	$	1,574,080	$	(68,035	)	$	793,440	$	(72,622	)	$	2,367,520	$	(140,657	)

Summary of change in unrealized gains (losses), net of income tax, on fixed maturity and equity securities, classified as available-for-sale

	For The Three Months Ended March 31,
	2013			2012
	(Dollars In Thousands)
Fixed maturities	$	(167,526	)	$	19,462
Equity securities	3,789			5,106