DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2015

DERIVATIVE FINANCIAL INSTRUMENTS

Schedule of realized investment gains (losses)

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015			For The Three
	to			to			Months Ended
	March 31, 2015			January 31, 2015			March 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Derivatives related to variable annuity contracts:
Interest rate futures - VA	$	(48	)	$	1,413		$	4,250
Equity futures - VA	(32,469		)	9,221			(2,651		)
Currency futures - VA	6,137			7,778			(1,278		)
Variance swaps - VA	—			—			(1,850		)
Equity options - VA	(21,774		)	3,047			(12,341		)
Interest rate swaptions - VA	(11,328		)	9,268			(9,403		)
Interest rate swaps - VA	(54,791		)	122,710			57,368
Embedded derivative - GMWB	35,870			(68,503		)	(27,315		)
Funds withheld derivative	38,236			(9,073		)	10,699
Total derivatives related to variable annuity contracts	(40,167		)	75,861			17,479
Derivatives related to FIA contracts:
Embedded derivative - FIA	(2,583		)	1,769			1,733
Equity futures - FIA	184			(184		)	345
Volatility futures - FIA	4			—			—
Equity options - FIA	4,375			(2,617		)	994
Total derivatives related to FIA contracts	1,980			(1,032		)	3,072
Derivatives related to IUL contracts:
Embedded derivative - IUL	257			(486		)	—
Equity futures - IUL	14			3			—
Equity options - IUL	140			(115		)	—
Total derivatives related to IUL contracts	411			(598		)	—
Embedded derivative - Modco reinsurance treaties	32,191			(68,026		)	(60,169		)
Derivatives with PLC (1)	565			15,863			105
Other derivatives	72			(37		)	(61		)
Total realized gains (losses) - derivatives	$	(4,948	)	$	22,031		$	(39,574	)

(1) These derivatives include the Interest, YRT premium support, and portfolio maintenance agreements between certain of the Company’s subsidiaries and PLC.

Schedule of realized investments gains and losses for Modco trading portfolio that is included in realized investment gains (losses) - all other investments

	Successor			Predecessor
	Company			Company
	February 1, 2015			January 1, 2015		For The Three
	to			to		Months Ended
	March 31, 2015			January 31, 2015		March 31, 2014
	(Dollars In Thousands)			(Dollars In Thousands)
Modco trading portfolio(1)	$	(33,160	)	$	73,062	$	66,303

(1)The Company elected to include the use of alternate disclosures for trading activities.

Schedule of components of the gains or losses on derivatives that qualify as a cash flow hedging relationship

				Amount and Location of
	Amount of Gains (Losses)			Gains (Losses)
	Deferred in			Reclassified from			Amount and Location of
	Accumulated Other			Accumulated Other			(Losses) Recognized in
	Comprehensive Income			Comprehensive Income			Income (Loss) on
	(Loss) on Derivatives			(Loss) into Income (Loss)			Derivatives
	(Effective Portion)			(Effective Portion)			(Ineffective Portion)
				Benefits and settlement			Realized investment
				expenses			gains (losses)
	(Dollars In Thousands)
Successor Company
February 1, 2015 to March 31, 2015
Inflation	$	(36	)	$	(90	)	$	(4	)
Total	$	(36	)	$	(90	)	$	(4	)

Predecessor Company
January 1, 2015 to January 31, 2015
Inflation	$	13	$	(36	)	$	(7	)
Total	$	13	$	(36	)	$	(7	)

Predecessor Company
For The Three Months Ended March 31, 2014
Inflation	$	903	$	(670	)	$	39
Total	$	903	$	(670	)	$	39

Schedule of information about the nature and accounting treatment of the Company's primary derivative financial instruments and the location in and effect on the consolidated financial statements

	Successor				Predecessor
	Company				Company
	As of March 31, 2015				As of December 31, 2014
	Notional		Fair		Notional		Fair
	Amount		Value		Amount		Value
	(Dollars In Thousands)				(Dollars In Thousands)
Other long-term investments
Derivatives not designated as hedging instruments:
Interest rate swaps	$	1,725,000	$	99,230	$	1,550,000	$	50,743
Derivatives with PLC(1)	1,510,682		22,505		1,497,010		6,077
Embedded derivative - Modco reinsurance treaties	65,609		1,572		25,760		1,051
Embedded derivative - GMWB	1,799,940		55,145		1,302,895		37,497
Interest rate futures	410,966		4,731		27,977		938
Equity futures	26,607		102		26,483		427
Currency futures	112,106		524		197,648		2,384
Equity options	2,285,482		163,491		1,921,167		163,212
Interest rate swaptions	225,000		5,690		625,000		8,012
Other	849		451		242		360
	$	8,162,241	$	353,441	$	7,174,182	$	270,701
Other liabilities
Cash flow hedges:
Inflation	$	19,285	$	55	$	40,469	$	142
Derivatives not designated as hedging instruments:
Interest rate swaps	250,000		1,792		275,000		3,599
Embedded derivative - Modco reinsurance treaties	2,512,057		341,698		2,562,848		311,727
Funds withheld derivative	1,477,462		71,533		1,233,424		57,305
Embedded derivative - GMWB	1,322,637		44,312		1,702,899		63,460
Embedded derivative - FIA	790,225		83,126		749,933		124,465
Embedded derivative - IUL	18,262		8,593		12,019		6,691
Interest rate futures	8,140		54		—		—
Equity futures	666,286		4,547		385,256		15,069
Currency futures	122,150		1,379		—		—
Equity options	960,718		38,866		699,295		47,077
Other	609		42		—		—
	$	8,147,831	$	595,997	$	7,661,143	$	629,535

(1) These derivatives include the Interest, YRT premium support, and portfolio maintenance agreements between certain of the Company’s subsidiaries and PLC.