ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

3 Months Ended

Mar. 31, 2014

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following tables summarize the changes in the accumulated balances for each component of accumulated other comprehensive income (loss) (“AOCI”) as of March 31, 2014 and December 31, 2013.

Changes in Accumulated Other Comprehensive Income (Loss) by Component

							Total
							Accumulated
	Unrealized			Accumulated			Other
	Gains and Losses			Gain and Loss			Comprehensive
	on Investments(2)			Derivatives			Income (Loss)
	(Dollars In Thousands, Net of Tax)
Beginning Balance, December 31, 2013	$	540,201		$	(1,235	)	$	538,966
Other comprehensive income (loss) before reclassifications	481,747			587			482,334
Other comprehensive income relating to other- than-temporary impaired investments for which a portion has been recognized in earnings	4,511			—			4,511
Amounts reclassified from accumulated other comprehensive income (loss)(1)	(3,756		)	436			(3,320		)
Net current-period other comprehensive income (loss)	482,502			1,023			483,525
Ending Balance, March 31, 2014	$	1,022,703		$	(212	)	$	1,022,491

(1) See Reclassification table below for details.

(2) These balances were offset by the impact of DAC and VOBA by $198.1 million and $316.2 million as of December 31, 2013 and March 31, 2014, respectively.

Changes in Accumulated Other Comprehensive Income (Loss) by Component

							Total
							Accumulated
	Unrealized			Accumulated			Other
	Gains and Losses			Gain and Loss			Comprehensive
	on Investments(2)			Derivatives			Income (Loss)
	(Dollars In Thousands, Net of Tax)
Beginning Balance, December 31, 2012	$	1,814,620		$	(3,496	)	$	1,811,124
Other comprehensive income (loss) before reclassifications	(1,250,416		)	734			(1,249,682		)
Other comprehensive income relating to other- than-temporary impaired investments for which a portion has been recognized in earnings	4,591			—			4,591
Amounts reclassified from accumulated other comprehensive income (loss)(1)	(28,594		)	1,527			(27,067		)
Net current-period other comprehensive income (loss)	(1,274,419		)	2,261			(1,272,158		)
Ending Balance, December 31, 2013	$	540,201		$	(1,235	)	$	538,966

(1) See Reclassification table below for details.

(2) These balances were offset by the impact of DAC and VOBA by $204.9 million and $198.1 million as of December 31, 2012 and 2013, respectively.

The following tables summarize the reclassifications amounts out of AOCI for the three months ended March 31, 2014 and 2013.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
	Other Comprehensive			Affected Line Item in the
	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
For The Three Months Ended March 31, 2014
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(670	)	Benefits and settlement expenses, net of reinsurance ceded
	(670		)	Total before tax
	234			Tax benefit
	$	(436	)	Net of tax
Unrealized gains and losses on available-for-sale securities
Net investment gains/(losses)	$	7,370		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(1,591		)	Net impairment losses recognized in earnings
	5,779			Total before tax
	(2,023		)	Tax expense
	$	3,756		Net of tax

(1) See Note 15, Derivative Financial Instruments for additional information.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
	Other Comprehensive			Affected Line Item in the
	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
For The Three Months Ended March 31, 2013
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(497	)	Benefits and settlement expenses, net of reinsurance ceded
	(497		)	Total before tax
	174			Tax benefit
	$	(323	)	Net of tax
Unrealized gains and losses on available-for-sale securities
Net investment gains/(losses)	$	12,299		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(4,584		)	Net impairment losses recognized in earnings
	7,715			Total before tax
	(2,700		)	Tax expense
	$	5,015		Net of tax

(1) See Note 15, Derivative Financial Instruments for additional information.