DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2015

DERIVATIVE FINANCIAL INSTRUMENTS

Schedule of realized investment gains (losses)

	Successor						Predecessor
	Company						Company
	For The Three			February 1, 2015			January 1, 2015			For The Three			For The Six
	Months Ended			to			to			Months Ended			Months Ended
	June 30, 2015			June 30, 2015			January 31, 2015			June 30, 2014			June 30, 2014
	(Dollars In Thousands)						(Dollars In Thousands)
Derivatives related to VA contracts:
Interest rate futures - VA	$	(14,183	)	$	(14,231	)	$	1,413		$	6,548		$	10,798
Equity futures - VA	(5,267		)	(37,736		)	9,221			(7,259		)	(9,910		)
Currency futures - VA	(8,709		)	(2,572		)	7,778			(2,887		)	(4,165		)
Variance swaps - VA	—			—			—			(823		)	(2,673		)
Equity options - VA	(3,550		)	(25,324		)	3,047			(20,949		)	(33,290		)
Interest rate swaptions - VA	2,547			(8,781		)	9,268			(4,998		)	(14,401		)
Interest rate swaps - VA	(121,167		)	(175,958		)	122,710			45,169			102,537
Embedded derivative - GMWB	45,969			81,839			(68,503		)	(13,147		)	(40,462		)
Funds withheld derivative	6,335			44,571			(9,073		)	19,031			29,730
Total derivatives related to VA contracts	(98,025		)	(138,192		)	75,861			20,685			38,164
Derivatives related to FIA contracts:
Embedded derivative - FIA	290			(2,293		)	1,769			(8,307		)	(6,574		)
Equity futures - FIA	123			307			(184		)	605			950
Volatility futures - FIA	25			29			—			8			8
Equity options - FIA	1,226			5,601			(2,617		)	2,984			3,978
Total derivatives related to FIA contracts	1,664			3,644			(1,032		)	(4,710		)	(1,638		)
Derivatives related to IUL contracts:
Embedded derivative - IUL	1,538			1,795			(486		)	(285		)	(285		)
Equity futures - IUL	9			23			3			—			—
Equity options - IUL	(78		)	62			(115		)	—			—
Total derivatives related to IUL contracts	1,469			1,880			(598		)	(285		)	(285		)
Embedded derivative - Modco reinsurance treaties	109,131			141,322			(68,026		)	(52,202		)	(112,371		)
Derivatives with PLC (1)	(3,684		)	(3,119		)	15,863			33			138
Other derivatives	11			83			(37		)	(141		)	(202		)
Total realized gains (losses) - derivatives	$	10,566		$	5,618		$	22,031		$	(36,620	)	$	(76,194	)

(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

For The Three

February 1, 2015

January 1, 2015

For The Three

For The Six

Months Ended

to

to

Months Ended

Months Ended

June 30, 2015

June 30, 2015

January 31, 2015

June 30, 2014

June 30, 2014

(Dollars In Thousands)

(Dollars In Thousands)

Modco trading portfolio(1)

$

(108,741

)

$

(141,901

)

$

73,062

$

60,989

$

127,292

(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
For The Three Months Ended June 30, 2015
Inflation	$	(95	)	$	(41	)	$	77
Total	$	(95	)	$	(41	)	$	77
Successor Company
February 1, 2015 to June 30, 2015
Inflation	$	(131	)	$	(131	)	$	73
Total	$	(131	)	$	(131	)	$	73
Predecessor Company
January 1, 2015 to January 31, 2015
Inflation	$	13		$	(36	)	$	(7	)
Total	$	13		$	(36	)	$	(7	)
Predecessor Company
For The Three Months Ended June 30, 2014
Inflation	$	(929	)	$	(614	)	$	(165	)
Total	$	(929	)	$	(614	)	$	(165	)
Predecessor Company
For The Six Months Ended June 30, 2014
Inflation	$	(26	)	$	(1,284	)	$	(126	)
Total	$	(26	)	$	(1,284	)	$	(126	)

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 June 30, 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	$	750,000	$	20,606	$	1,550,000	$	50,743
Derivatives with PLC(1)	1,561,459		18,822		1,497,010		6,077
Embedded derivative - Modco reinsurance treaties	65,242		2,321		25,760		1,051
Embedded derivative - GMWB	2,416,882		79,376		1,302,895		37,497
Interest rate futures	445,008		795		27,977		938
Equity futures	646,935		7,906		26,483		427
Currency futures	111,856		1,412		197,648		2,384
Equity options	2,695,658		186,051		1,921,167		163,212
Interest rate swaptions	225,000		8,237		625,000		8,012
Other	791		344		242		360
	$	8,918,831	$	325,870	$	7,174,182	$	270,701
Other liabilities
Cash flow hedges:
Inflation	$	—	$	—	$	40,469	$	142
Derivatives not designated as hedging instruments:
Interest rate swaps	1,225,000		49,179		275,000		3,599
Embedded derivative - Modco reinsurance treaties	2,496,000		223,342		2,562,848		311,727
Funds withheld derivative	1,529,607		96,999		1,233,424		57,305
Embedded derivative - GMWB	869,041		22,573		1,702,899		63,460
Embedded derivative - FIA	854,986		85,129		749,933		124,465
Embedded derivative - IUL	28,270		11,902		12,019		6,691
Interest rate futures	334,067		3,453		—		—
Equity futures	10,289		47		385,256		15,069
Currency futures	137,101		2,021		—		—
Equity options	1,255,872		36,100		699,295		47,077
Other	550		5		—		—
	$	8,740,783	$	530,750	$	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.