13. 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 September 30, 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			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	797,925			(58		)	797,867
Other comprehensive income relating to other-than-temporary impaired investments for which a portion has been recognized in earnings	4,494			—			4,494
Amounts reclassified from accumulated other comprehensive income (loss)(1)	(28,864		)	1,025			(27,839		)
Net current-period other comprehensive income	773,555			967			774,522
Ending Balance, September 30, 2014	$	1,313,756		$	(268	)	$	1,313,488

(1) See Reclassification table below for details.

(2) These balances were offset by the impact of DAC and VOBA by $198.1 million and $380.4 million as of December 31, 2013

and September 30, 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			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 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 September 30, 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)
Accumulated Other Comprehensive Income (Loss) Components

For The Three Months Ended September 30, 2014
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(293	)	Benefits and settlement expenses, net of reinsurance ceded
	(293		)	Total before tax
	103			Tax (expense) or benefit
	$	(190	)	Net of tax

Unrealized gains and losses on available-for-sale securities
Net investment gains/(losses)	$	22,244		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(2,354		)	Net impairment losses recognized in earnings
	19,890			Total before tax
	(6,962		)	Tax (expense) or benefit
	$	12,928		Net of tax

⁽¹⁾ See Note 16, 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)
Accumulated Other Comprehensive Income (Loss) Components

For The Three Months Ended September 30, 2013
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(572	)	Benefits and settlement expenses, net of reinsurance ceded
	(572		)	Total before tax
	200			Tax (expense) or benefit
	$	(372	)	Net of tax

Unrealized gains and losses on available-for-sale securities
Net investment gains/(losses)	$	10,546		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(8,681		)	Net impairment losses recognized in earnings
	1,865			Total before tax
	(653		)	Tax (expense) or benefit
	$	1,212		Net of tax

⁽¹⁾ See Note 16, Derivative Financial Instruments, for additional information.

The following tables summarize the reclassifications amounts out of AOCI for the nine months ended September 30, 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)
Accumulated Other Comprehensive Income (Loss) Components

For The Nine Months Ended September 30, 2014
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(1,577	)	Benefits and settlement expenses, net of reinsurance ceded
	(1,577		)	Total before tax
	552			Tax (expense) or benefit
	$	(1,025	)	Net of tax

Unrealized gains and losses on available-for-sale securities
Net investment gains/(losses)	$	49,812		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(5,405		)	Net impairment losses recognized in earnings
	44,407			Total before tax
	(15,543		)	Tax (expense) or benefit
	$	28,864		Net of tax

⁽¹⁾ See Note 16, 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)
Accumulated Other Comprehensive Income (Loss) Components

For The Nine Months Ended September 30, 2013
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(1,649	)	Benefits and settlement expenses, net of reinsurance ceded
	(1,649		)	Total before tax
	577			Tax (expense) or benefit
	$	(1,072	)	Net of tax

Unrealized gains and losses on available-for-sale securities
Net investment gains/(losses)	$	44,503		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(17,265		)	Net impairment losses recognized in earnings
	27,238			Total before tax
	(9,533		)	Tax (expense) or benefit
	$	17,705		Net of tax

⁽¹⁾ See Note 16, Derivative Financial Instruments, for additional information.