FUTURE POLICY BENEFIT RESERVES

12 Months Ended

Dec. 31, 2011

Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block]

12. Future Policy Benefit Reserves

          The Company enters into long duration contracts that subject the Company to mortality and morbidity risks and which were accounted for as life premiums earned. Future policy benefit reserves were established using appropriate assumptions for investment yields, mortality, and expenses, including a provision for adverse deviation. The average interest rate used for the determination of the future policy benefits for these contracts was 4.5% at December 31, 2011 and 2010. Total future policy benefit reserves for the year ended December 31, 2011 and 2010 were $4.8 billion and $5.1 billion, respectively. The decrease of $232.6 million in the Annuities is mainly due to foreign exchange movements and the usual releases on single premium annuities in line with benefits paid and mortality of underlying policyholders.

          Future policy benefit reserves are comprised of the following:

Year ended December 31 (U.S. dollars in thousands)	2011		2010
Traditional Life	$	812,628	$	809,776
Annuities		4,032,766		4,265,351
Total future policy benefit reserves	$	4,845,394	$	5,075,127