17. OFFSETTING OF ASSETS AND LIABILITIES

Certain of the Company’s derivative instruments are subject to enforceable master netting arrangements that provide for the net settlement of all derivative contracts between the Company and a counterparty in the event of default or upon the occurrence of certain termination events. Collateral support agreements associated with each master netting arrangement provide that the Company will receive or pledge financial collateral in the event either minimum thresholds, or in certain cases ratings levels, have been reached. Additionally, certain of the Company’s repurchase agreements provide for net settlement on termination of the agreement. Refer to Note 9, Debt and Other Obligations for details of the Company’s repurchase agreement programs.

The tables below present the derivative instruments by assets and liabilities for the Company as of September 30, 2014.

					Net Amounts
			Gross		of Assets		Gross Amounts Not Offset
			Amounts		Presented in		in the Statement of
	Gross		Offset in the		the		Financial Position
	Amounts of		Statement of		Statement of				Cash
	Recognized		Financial		Financial		Financial		Collateral
	Assets		Position		Position		Instruments		Received		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Assets
Derivatives:
Free-Standing derivatives	$	170,970	$	—	$	170,970	$	58,156	$	34,311	$	78,503
Embedded derivative - Modco reinsurance treaties	1,381		—		1,381		—		—		1,381
Embedded derivative - GMWB	57,364		—		57,364		—		—		57,364
Total derivatives, subject to a master netting arrangement or similar arrangement	229,715		—		229,715		58,156		34,311		137,248
Total derivatives, not subject to a master netting arrangement or similar arrangement	2,836		—		2,836		—		—		2,836
Total derivatives	232,551		—		232,551		58,156		34,311		140,084
Total Assets	$	232,551	$	—	$	232,551	$	58,156	$	34,311	$	140,084

					Net Amounts
			Gross		of Liabilities		Gross Amounts Not Offset
			Amounts		Presented in		in the Statement of
	Gross		Offset in the		the		Financial Position
	Amounts of		Statement of		Statement of				Cash
	Recognized		Financial		Financial		Financial		Collateral
	Liabilities		Position		Position		Instruments		Paid		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Liabilities
Derivatives:
Free-Standing derivatives	$	85,665	$	—	$	85,665	$	58,156	$	25,961	$	1,548
Embedded derivative - Modco reinsurance treaties	298,728		—		298,728		—		—		298,728
Funds withheld derivative	64,573		—		64,573		—		—		64,573
Embedded derivative - GMWB	15,351		—		15,351		—		—		15,351
Embedded derivative - FIA	103,497		—		103,497		—		—		103,497
Embedded derivative - IUL	2,609		—		2,609		—		—		2,609
Total derivatives, subject to a master netting arrangement or similar arrangement	570,423		—		570,423		58,156		25,961		486,306
Total derivatives, not subject to a master netting arrangement or similar arrangement	—		—		—		—		—		—
Total derivatives	570,423		—		570,423		58,156		25,961		486,306
Repurchase agreements(1)	359,804		—		359,804		—		—		359,804
Total Liabilities	$	930,227	$	—	$	930,227	$	58,156	$	25,961	$	846,110

(1) Borrowings under repurchase agreements are for a term less than 90 days.

The tables below present the derivative instruments by assets and liabilities for the Company as of December 31, 2013.

					Net Amounts
			Gross		of Assets		Gross Amounts Not Offset
			Amounts		Presented in		in the Statement of
	Gross		Offset in the		the		Financial Position
	Amounts of		Statement of		Statement of				Cash
	Recognized		Financial		Financial		Financial		Collateral
	Assets		Position		Position		Instruments		Received		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Assets
Derivatives:
Free-Standing derivatives	$	110,983	$	—	$	110,983	$	52,487	$	10,700	$	47,796
Embedded derivative - Modco reinsurance treaties	1,517		—		1,517		—		—		1,517
Embedded derivative - GMWB	95,376		—		95,376		—		—		95,376
Total derivatives, subject to a master netting arrangement or similar arrangement	207,876		—		207,876		52,487		10,700		144,689
Total derivatives, not subject to a master netting arrangement or similar arrangement	2,444		—		2,444		—		—		2,444
Total derivatives	210,320		—		210,320		52,487		10,700		147,133
Total Assets	$	210,320	$	—	$	210,320	$	52,487	$	10,700	$	147,133

					Net Amounts
			Gross		of Liabilities		Gross Amounts Not Offset
			Amounts		Presented in		in the Statement of
	Gross		Offset in the		the		Financial Position
	Amounts of		Statement of		Statement of				Cash
	Recognized		Financial		Financial		Financial		Collateral
	Liabilities		Position		Position		Instruments		Paid		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Liabilities
Derivatives:
Free-Standing derivatives	$	187,172	$	—	$	187,172	$	52,487	$	98,359	$	36,326
Embedded derivative - Modco reinsurance treaties	206,918		—		206,918		—		—		206,918
Funds withheld derivative	34,251		—		34,251		—		—		34,251
Embedded derivative - GMWB	1,496		—		1,496		—		—		1,496
Embedded derivative - FIA	25,324		—		25,324		—		—		25,324
Total derivatives, subject to a master netting arrangement or similar arrangement	455,161		—		455,161		52,487		98,359		304,315
Total derivatives, not subject to a master netting arrangement or similar arrangement	—		—		—		—		—		—
Total derivatives	455,161		—		455,161		52,487		98,359		304,315
Repurchase agreements(1)	350,000		—		350,000		—		—		350,000
Total Liabilities	$	805,161	$	—	$	805,161	$	52,487	$	98,359	$	654,315

(1) Borrowings under repurchase agreements are for a term less than 90 days.