INVESTMENT OPERATIONS (Tables)

12 Months Ended

Dec. 31, 2014

Summary of major categories of net investment income

	For The Year Ended December 31,
	2014		2013		2012
	(Dollars In Thousands)
Fixed maturities	$	1,711,722	$	1,508,924	$	1,453,018
Equity securities	41,533		26,735		20,740
Mortgage loans	360,778		333,093		349,845
Investment real estate	4,483		3,555		3,289
Short-term investments	109,592		72,433		62,887
	2,228,108		1,944,740		1,889,779
Other investment expenses	130,095		108,552		100,441
Net investment income	$	2,098,013	$	1,836,188	$	1,789,338

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

	For The Year Ended December 31,
	2014			2013			2012
	(Dollars In Thousands)
Fixed maturities	$	75,074		$	63,161		$	67,669
Equity securities	495			3,276			(45		)
Impairments on fixed maturity securities	(7,275		)	(19,100		)	(58,144		)
Impairments on equity securities	—			(3,347		)	—
Modco trading portfolio	142,016			(178,134		)	177,986
Other investments	(12,283		)	(9,840		)	(12,774		)
Total realized gains (losses) - investments	$	198,027		$	(143,984	)	$	174,692

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)
2014
Fixed maturities:
Bonds
Residential mortgage-backed securities	$	1,374,141	$	56,381	$	(12,264	)	$	1,418,258	$	6,404
Commercial mortgage-backed securities	1,119,979		59,637		(2,364		)	1,177,252		—
Other asset-backed securities	857,365		17,961		(35,950		)	839,376		(95		)
U.S. government-related securities	1,394,028		44,149		(9,282		)	1,428,895		—
Other government-related securities	16,939		3,233		—			20,172		—
States, municipals, and political subdivisions	1,391,526		296,594		(431		)	1,687,689		—
Corporate bonds	24,744,050		2,760,703		(138,975		)	27,365,778		—
	30,898,028		3,238,658		(199,266		)	33,937,420		6,309
Equity securities	713,813		35,646		(14,153		)	735,306		—
Short-term investments	151,572		—		—			151,572		—
	$	31,763,413	$	3,274,304	$	(213,419	)	$	34,824,298	$	6,309
2013
Fixed maturities:
Bonds
Residential mortgage-backed securities	$	1,435,349	$	34,255	$	(24,536	)	$	1,445,068	$	979
Commercial mortgage-backed securities	963,461		26,900		(19,705		)	970,656		—
Other asset-backed securities	926,396		15,135		(69,548		)	871,983		(51		)
U.S. government-related securities	1,529,818		32,150		(54,078		)	1,507,890		—
Other government-related securities	49,171		2,257		(1		)	51,427		—
States, municipals, and political subdivisions	1,315,457		103,663		(8,291		)	1,410,829		—
Corporate bonds	24,630,156		1,510,233		(391,813		)	25,748,576		—
	30,849,808		1,724,593		(567,972		)	32,006,429		928
Equity securities	611,473		6,068		(36,332		)	581,209		—
Short-term investments	80,582		—		—			80,582		—
	$	31,541,863	$	1,730,661	$	(604,304	)	$	32,668,220	$	928

(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

2014
Fixed maturities:
Other	$	435,000	$	50,422	$	—		$	485,422	$	—
	$	435,000	$	50,422	$	—		$	485,422	$	—
2013
Fixed maturities:
Other	$	365,000	$	—	$	(29,324	)	$	335,676	$	—
	$	365,000	$	—	$	(29,324	)	$	335,676	$	—

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	$	1,033,959	$	1,045,159	$	—	$	—
Due after one year through five years	7,084,156		7,547,483		—		—
Due after five years through ten years	6,203,383		6,519,436		—		—
Due after ten years	16,576,530		18,825,342		435,000		485,422
	$	30,898,028	$	33,937,420	$	435,000	$	485,422

Schedule of available-for-sale credit losses on fixed maturities held by the Company for which a portion of an other-than-temporary impairment was recognized in other comprehensive income

	For The Year Ended December 31,
	2014			2013			2012
	(Dollars In Thousands)
Beginning balance	$	41,674		$	121,237		$	69,476
Additions for newly impaired securities	—			3,516			26,544
Additions for previously impaired securities	2,263			12,066			25,217
Reductions for previously impaired securities due to a change in expected cash flows	(28,474		)	(87,908		)	—
Reductions for previously impaired securities that were sold in the current period	—			(7,237		)	—
Other	—			—			—
Ending balance	$	15,463		$	41,674		$	121,237

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 December 31, 2014:

	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	$	165,877	$	(9,547	)	$	67,301	$	(2,717	)	$	233,178	$	(12,264	)
Commercial mortgage-backed securities	49,908		(334		)	102,529		(2,030		)	152,437		(2,364		)
Other asset-backed securities	108,665		(6,473		)	537,488		(29,477		)	646,153		(35,950		)
U.S. government-related securities	231,917		(3,868		)	280,803		(5,414		)	512,720		(9,282		)
Other government-related securities	—		—			—		—			—		—
States, municipalities, and political subdivisions	1,905		(134		)	10,481		(297		)	12,386		(431		)
Corporate bonds	1,657,103		(76,285		)	776,863		(62,690		)	2,433,966		(138,975		)
Equities	17,430		(218		)	129,509		(13,935		)	146,939		(14,153		)
	$	2,232,805	$	(96,859	)	$	1,904,974	$	(116,560	)	$	4,137,779	$	(213,419	)

	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	$	332,812	$	(14,050	)	$	209,818	$	(10,486	)	$	542,630	$	(24,536	)
Commercial mortgage-backed securities	429,228		(18,467		)	13,840		(1,238		)	443,068		(19,705		)
Other asset-backed securities	175,846		(14,555		)	497,512		(54,993		)	673,358		(69,548		)
U.S. government-related securities	891,698		(53,508		)	6,038		(570		)	897,736		(54,078		)
Other government-related securities	10,161		(1		)	—		—			10,161		(1		)
States, municipalities, and political subdivisions	172,157		(8,113		)	335		(178		)	172,492		(8,291		)
Corporate bonds	7,480,163		(353,069		)	271,535		(38,744		)	7,751,698		(391,813		)
Equities	376,776		(27,861		)	21,764		(8,471		)	398,540		(36,332		)
	$	9,868,841	$	(489,624	)	$	1,020,842	$	(114,680	)	$	10,889,683	$	(604,304	)

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

	For The Year Ended December 31,
	2014		2013			2012
	(Dollars In Thousands)
Fixed maturities	$	1,224,248	$	(1,269,277	)	$	819,152
Equity securities	33,642		(20,899		)	8,484

- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

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- Definition

Tabular disclosure of investment income, including, but not limited to, interest and dividend income and amortization of discount (premium) derived from debt and equity securities. Excludes realized and unrealized gain (loss) on investments.

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- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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