Investments (Tables)

9 Months Ended

Sep. 30, 2012

Summary of Fixed Maturities And Equity Securities Available for Sale by Component

A summary of fixed maturities and equity securities available for sale by cost or amortized cost and estimated fair value at September 30, 2012 is as follows:

Portfolio Composition as of September 30, 2012

	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		% of Total Fixed Maturities*
Fixed maturities available for sale:
Bonds:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	29,089	$	1,485	$	(3	)	$	30,571		0	%
States, municipalities, and political subdivisions		1,176,752		171,389		0			1,348,141		11
Foreign governments		22,698		1,118		0			23,816		0
Corporates		8,784,515		1,462,332		(57,431	)		10,189,416		82
Collateralized debt obligations		63,549		0		(25,532	)		38,017		0
Other asset-backed securities		43,782		3,144		(704	)		46,222		0
Redeemable preferred stocks		808,844		37,500		(19,151	)		827,193		7
Total fixed maturities		10,929,229		1,676,968		(102,821	)		12,503,376		100	%
Equity securities		14,875		1,847		(63	)		16,659
Total fixed maturities and equity securities	$	10,944,104	$	1,678,815	$	(102,884	)	$	12,520,035

* At fair value

Schedule of Fixed Maturities by Contractual Maturity

A schedule of fixed maturities by contractual maturity date at September 30, 2012 is shown below on an amortized cost basis and on a fair value basis. Actual maturity dates could differ from contractual maturities due to call or prepayment provisions.

	Amortized Cost		Fair Value
Fixed maturities available for sale:
Due in one year or less	$	106,965	$	110,397
Due from one to five years		436,789		473,918
Due from five to ten years		774,912		883,334
Due from ten to twenty years		2,479,790		2,872,096
Due after twenty years		7,019,092		8,074,506
Mortgage-backed and asset-backed securities		111,681		89,125
	$	10,929,229	$	12,503,376

Schedule of Selected Information about Sales of Fixed Maturities

Selected information about sales of fixed maturities is as follows:

For the nine months ended September 30,
	2012			2011
Proceeds from sales	$	148,597		$	200,256
Gross realized gains		12,606			22,073
Gross realized losses		(240	)		(24,323	)

Assets Measured at Fair Value on Recurring Basis

The following table represents assets measured at fair value on a recurring basis:

Fair Value Measurements at September 30, 2012 Using:

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs  (Level 2)			Significant Unobservable Inputs (Level  3)			Total Fair Value
Fixed maturities available for sale:
Bonds:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	0		$	30,571		$	0		$	30,571
States, municipalities, and political subdivisions		0			1,348,141			0			1,348,141
Foreign governments		0			23,816			0			23,816
Corporates		61,900			10,000,997			126,519			10,189,416
Collateralized debt obligations		0			0			38,017			38,017
Other asset-backed securities		0			38,486			7,736			46,222
Redeemable preferred stocks		127,740			699,453			0			827,193
Total fixed maturities		189,640			12,141,464			172,272			12,503,376
Equity securities		15,920			0			739			16,659
Total fixed maturities and equity securities	$	205,560		$	12,141,464		$	173,011		$	12,520,035
Percent of total		1.6	%		97.0	%		1.4	%		100.0	%

Schedule of Unrealized Investment Losses by Class of Investment

The following table discloses unrealized investment losses by class of investment at September 30, 2012. Torchmark considers these investments not to be other-than-temporarily impaired.

Analysis of Gross Unrealized Investment Losses

At September 30, 2012

	Less than Twelve Months					Twelve Months or Longer					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Fixed maturities available for sale:
Bonds:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	208	$	(3	)	$	28	$	0		$	236	$	(3	)
Corporates		175,263		(2,008	)		437,802		(55,423	)		613,065		(57,431	)
Collateralized debt obligations		0		0			37,892		(25,532	)		37,892		(25,532	)
Other asset-backed securities		8,066		(90	)		7,736		(614	)		15,802		(704	)
Redeemable preferred stocks		60,715		(1,385	)		249,761		(17,766	)		310,476		(19,151	)
Total fixed maturities		244,252		(3,486	)		733,219		(99,335	)		977,471		(102,821	)
Equity securities		44		(55	)		342		(8	)		386		(63	)
Total fixed maturities and equity securities	$	244,296	$	(3,541	)	$	733,561	$	(99,343	)	$	977,857	$	(102,884	)

Schedule of Additional Information about Investments in Unrealized Loss Position

Additional information about investments in an unrealized loss position is as follows:

	Less than Twelve Months		Twelve Months or Longer		Total
Number of issues (Cusip numbers) held:
As of September 30, 2012		73		72		145
As of December 31, 2011		117		93		210