Statutory Balances and Accounting Practices

12 Months Ended

Dec. 31, 2012

Statutory Balances And Accounting Practices [Abstract]

Statutory Balances and Accounting Practices

Statutory Balances and Accounting Practices

The Insurance Companies prepare their statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the insurance departments of their domiciliary states. Prescribed statutory accounting practices primarily include those published as statements of SAP by the NAIC, as well as state laws, regulations, and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed. As of December 31, 2012, there were no material permitted statutory accounting practices utilized by the Insurance Companies.

The following table presents the statutory net income and capital and surplus of the Insurance Companies, as reported to regulatory authorities:

	Year Ended December 31,
	2012		2011		2010
	(Amounts in thousands)
Statutory net income(1)	$	63,365	$	223,447	$	142,981
Statutory capital and surplus	1,440,973		1,497,609		1,322,270

 __________

(1) Statutory net income excludes changes in the fair value of the investment portfolio as a result of the application of fair value option.

The statutory capital and surplus of each of the Insurance Companies exceeded the highest level of minimum regulatory required capital.