Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value, Assets and Liabilities Measured on Recurring Basis

The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.

	As of September 30, 2017
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	4,690,040	$	4,066	$	0		$	4,694,106
Obligations of U.S. states and their political subdivisions	0		101,543		0		0			101,543
Foreign government bonds	0		125,135		0		0			125,135
U.S. corporate public securities	0		1,733,082		559		0			1,733,641
U.S. corporate private securities	0		1,178,845		122,776		0			1,301,621
Foreign corporate public securities	0		220,063		688		0			220,751
Foreign corporate private securities	0		729,729		10,725		0			740,454
Asset-backed securities(4)	0		92,363		277,238		0			369,601
Commercial mortgage-backed securities	0		507,913		0		0			507,913
Residential mortgage-backed securities	0		174,179		0		0			174,179
Subtotal	0		9,552,892		416,052		0			9,968,944
Trading account assets:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	0		121,254		0		0			121,254
Corporate securities	0		41,557		0		0			41,557
Foreign government securities	0		0		0		0			0
Asset-backed securities(4)	0		0		0		0			0
Equity securities	5,499		0		10,337		0			15,836
Subtotal	5,499		162,811		10,337		0			178,647
Equity securities, available-for-sale	0		18		0		0			18
Short-term investments	0		393,738		75		0			393,813
Cash equivalents	30,622		2,403,246		0		0			2,433,868
Other long-term investments(5)	7,982		4,971,348		0		(4,970,040		)	9,290
Reinsurance recoverables	0		0		242,381		0			242,381
Receivables from parent and affiliates	0		41,013		0		0			41,013
Subtotal excluding separate account assets	44,103		17,525,066		668,845		(4,970,040		)	13,267,974
Separate account assets(2)	0		37,970,351		0		0			37,970,351
Total assets	$	44,103	$	55,495,417	$	668,845	$	(4,970,040	)	$	51,238,325
Future policy benefits(3)	$	0	$	0	$	7,999,051	$	0		$	7,999,051
Payables to parent and affiliates	0		1,660,701		0		(1,660,701		)	0
Other liabilities	0		0		0		0			0
Total liabilities	$	0	$	1,660,701	$	7,999,051	$	(1,660,701	)	$	7,999,051

	As of December 31, 2016
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	4,465,025	$	0	$	0		$	4,465,025
Obligations of U.S. states and their political subdivisions	0		89,974		0		0			89,974
Foreign government bonds	0		69,299		87		0			69,386
U.S. corporate public securities	0		1,909,440		15,598		0			1,925,038
U.S. corporate private securities	0		997,004		124,864		0			1,121,868
Foreign corporate public securities	0		217,363		0		0			217,363
Foreign corporate private securities	0		526,504		11,527		0			538,031
Asset-backed securities(4)	0		219,574		31,735		0			251,309
Commercial mortgage-backed securities	0		484,713		0		0			484,713
Residential mortgage-backed securities	0		200,056		0		0			200,056
Subtotal	0		9,178,952		183,811		0			9,362,763
Trading account assets:
U.S Treasury securities and obligations of U.S. government authorities and agencies	0		116,184		0		0			116,184
Corporate securities	0		21,632		0		0			21,632
Asset-backed securities(4)	0		1,697		0		0			1,697
Equity securities	5,494		0		4,864		0			10,358
Subtotal	5,494		139,513		4,864		0			149,871
Equity securities, available-for-sale	0		18		0		0			18
Short-term investments	519,000		392,700		450		0			912,150
Cash equivalents	738,449		847,329		375		0			1,586,153
Other long-term investments(5)	23,967		4,872,392		0		(4,582,540		)	313,819
Reinsurance recoverables	0		0		240,091		0			240,091
Receivables from parent and affiliates	0		6,962		33,962		0			40,924
Subtotal excluding separate account assets	1,286,910		15,437,866		463,553		(4,582,540		)	12,605,789
Separate account assets(2)	0		37,429,739		0		0			37,429,739
Total assets	$	1,286,910	$	52,867,605	$	463,553	$	(4,582,540	)	$	50,035,528
Future policy benefits(3)	$	0	$	0	$	7,707,333	$	0		$	7,707,333
Payable to parent and affiliates	0		1,654,360		0		(1,654,360		)	0
Other liabilities	5,051		0		0		0			5,051
Total liabilities	$	5,051	$	1,654,360	$	7,707,333	$	(1,654,360	)	$	7,712,384

(1) “Netting” amounts represent cash collateral of $3,309 million and $2,928 million as of September 30, 2017 and December 31, 2016, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements.

(2) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Unaudited Interim Statements of Financial Position.

(3) As of September 30, 2017, the net embedded derivative liability position of $7,999 million includes $828 million of embedded derivatives in an asset position and $8,827 million of embedded derivatives in a liability position. As of December 31, 2016, the net embedded derivative liability position of $7,707 million includes $1,060 million of embedded derivatives in an asset position and $8,767 million of embedded derivatives in a liability position.

(4) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(5) Other long-term investments excluded from the fair value hierarchy include certain hedge funds, private funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At September 30, 2017 and December 31, 2016, the fair values of such investments were $0.3 million and $0.4 million, respectively.

Fair Value Inputs, Assets, Quantitative Information

The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.

	As of September 30, 2017
	Fair Value		Primary Valuation Techniques	Unobservable     Inputs	Minimum		Maximum		Weighted     Average		Impact of Increase in Input on Fair     Value(1)
	(in thousands)
Assets:
Corporate securities	$	128,030	Discounted cash flow	Discount rate	1.38	%	14.85	%	3.84	%	Decrease
Reinsurance recoverables	$	242,381	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits(2)	$	7,999,051	Discounted cash flow	Lapse rate(3)	1	%	12	%			Decrease
				Spread over LIBOR(4)	0.13	%	1.27	%			Decrease
				Utilization rate(5)	52	%	97	%			Increase
				Withdrawal rate	See table footnote (6) below.
				Mortality rate(7)	0	%	14	%			Decrease
				Equity volatility curve	13	%	24	%			Increase

	As of December 31, 2016
	Fair Value		Primary Valuation Techniques	Unobservable     Inputs	Minimum		Maximum		Weighted     Average		Impact of Increase in Input on Fair     Value(1)
	(in thousands)
Assets:
Corporate securities	$	136,391	Discounted cash flow	Discount rate	3.24	%	17.12	%	4.71	%	Decrease
			Liquidation	Liquidation value	98.21	%	98.68	%	98.64	%	Increase
Reinsurance recoverables	$	240,091	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits(2)	$	7,707,333	Discounted cash flow	Lapse rate(3)	0	%	13	%			Decrease
				Spread over LIBOR(4)	0.25	%	1.50	%			Decrease
				Utilization rate(5)	52	%	96	%			Increase
				Withdrawal rate	See table footnote (6) below.
				Mortality rate(7)	0	%	14	%			Decrease
				Equity volatility curve	16	%	25	%			Increase

(1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2) Future policy benefits primarily represent general account liabilities for the living benefit guarantees of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(3) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply.

(4) The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the risk-free discount (i.e., LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread includes an estimate of non-performance risk (“NPR”), which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt.

(5) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration, and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.

(6) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of September 30, 2017 and December 31, 2016, the minimum withdrawal assumption rate is 78% and the maximum withdrawal assumption rate may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(7) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35 to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0%. Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table.

Fair Value Inputs, Liabilities, Quantitative Information

The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.

	As of September 30, 2017
	Fair Value		Primary Valuation Techniques	Unobservable     Inputs	Minimum		Maximum		Weighted     Average		Impact of Increase in Input on Fair     Value(1)
	(in thousands)
Assets:
Corporate securities	$	128,030	Discounted cash flow	Discount rate	1.38	%	14.85	%	3.84	%	Decrease
Reinsurance recoverables	$	242,381	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits(2)	$	7,999,051	Discounted cash flow	Lapse rate(3)	1	%	12	%			Decrease
				Spread over LIBOR(4)	0.13	%	1.27	%			Decrease
				Utilization rate(5)	52	%	97	%			Increase
				Withdrawal rate	See table footnote (6) below.
				Mortality rate(7)	0	%	14	%			Decrease
				Equity volatility curve	13	%	24	%			Increase

	As of December 31, 2016
	Fair Value		Primary Valuation Techniques	Unobservable     Inputs	Minimum		Maximum		Weighted     Average		Impact of Increase in Input on Fair     Value(1)
	(in thousands)
Assets:
Corporate securities	$	136,391	Discounted cash flow	Discount rate	3.24	%	17.12	%	4.71	%	Decrease
			Liquidation	Liquidation value	98.21	%	98.68	%	98.64	%	Increase
Reinsurance recoverables	$	240,091	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits(2)	$	7,707,333	Discounted cash flow	Lapse rate(3)	0	%	13	%			Decrease
				Spread over LIBOR(4)	0.25	%	1.50	%			Decrease
				Utilization rate(5)	52	%	96	%			Increase
				Withdrawal rate	See table footnote (6) below.
				Mortality rate(7)	0	%	14	%			Decrease
				Equity volatility curve	16	%	25	%			Increase

(1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2) Future policy benefits primarily represent general account liabilities for the living benefit guarantees of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(3) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply.

(4) The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the risk-free discount (i.e., LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread includes an estimate of non-performance risk (“NPR”), which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt.

(5) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration, and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.

(6) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of September 30, 2017 and December 31, 2016, the minimum withdrawal assumption rate is 78% and the maximum withdrawal assumption rate may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(7) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35 to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0%. Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on the significance of the unobservable inputs in the overall fair value measurement. Transfers into Level 3 are generally the result of unobservable inputs utilized within the valuation methodologies or the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. For further information on valuation processes, see Note 10 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

	Three Months Ended September 30, 2017
	Fixed Maturities, Available-For-Sale
	U.S Treasury Securities and Obligations of U.S. Government Authorities and Agencies			Foreign Government Bonds		U.S. Corporate Public Securities			U.S. Corporate Private Securities			Foreign Corporate Public Securities		Foreign Corporate Private Securities
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	3,151		$	0	$	1,911		$	122,609		$	0	$	9,047
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0			0		11			(940		)	0		(16		)
Asset management fees and other income	0			0		0			0			0		0
Included in other comprehensive income (loss)	0			0		0			(1,659		)	13		(624		)
Net investment income	0			0		5			1,510			0		11
Purchases	917			0		0			306			0		28
Sales	0			0		0			0			0		0
Issuances	0			0		0			0			0		0
Settlements	0			0		(312		)	(1,358		)	0		0
Transfers into Level 3(1)	0			0		0			5,322			675		2,293
Transfers out of Level 3(1)	0			0		(1,056		)	0			0		0
Other(5)	(2		)	0		0			(3,014		)	0		(14		)
Fair Value, end of period assets/(liabilities)	$	4,066		$	0	$	559		$	122,776		$	688	$	10,725
Unrealized gains (losses) for assets/liabilities still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0		$	0	$	0		$	0		$	0	$	0
Asset management fees and other income	$	0		$	0	$	0		$	0		$	0	$	0

	Three Months Ended September 30, 2017
	Fixed Maturities, Available-For-Sale
	Asset-Backed Securities (3)			Trading Account Assets -Equity Securities		Equity Securities, Available-For-Sale		Short-Term Investments			Cash Equivalents
				(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	215,503		$	5,854	$	0	$	450		$	375
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(4)	527			0		0		0			0
Asset management fees and other income	0			630		0		0			0
Included in other comprehensive income (loss)	(306		)	0		0		0			0
Net investment income	111			0		0		0			0
Purchases	78,112			0		0		75			0
Sales	0			0		0		0			0
Issuances	0			0		0		0			0
Settlements	(6,720		)	0		0		0			0
Transfers into Level 3(1)	2,513			0		0		0			0
Transfers out of Level 3(1)	(12,502		)	0		0		0			0
Other(5)	0			3,853		0		(450		)	(375		)
Fair Value, end of period assets/(liabilities)	$	277,238		$	10,337	$	0	$	75		$	0
Unrealized gains (losses) for assets/liabilities still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0		$	0	$	0	$	0		$	0
Asset management fees and other income	$	0		$	630	$	0	$	0		$	0

	Three Months Ended September 30, 2017
	Other Long-term Investments		Reinsurance Recoverables			Receivables from Parent and Affiliates		Future Policy Benefits
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	0	$	268,337		$	0	$	(9,331,040	)
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(4)	0		(33,779		)	0		1,584,013
Asset management fees and other income	0		0			0		0
Included in other comprehensive income (loss)	0		0			0		0
Net investment income	0		0			0		0
Purchases	0		4,875			0		0
Sales	0		0			0		0
Issuances	0		0			0		(252,024		)
Settlements	0		0			0		0
Transfers into Level 3(1)	0		0			0		0
Transfers out of Level 3(1)	0		0			0		0
Other(5)	0		2,948			0		0
Fair Value, end of period assets/(liabilities)	$	0	$	242,381		$	0	$	(7,999,051	)
Unrealized gains (losses) for assets/liabilities still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	(31,836	)	$	0	$	1,503,393
Asset management fees and other income	$	0	$	0		$	0	$	0

	Nine Months Ended September 30, 2017
	Fixed Maturities, Available-For-Sale
	U.S Treasury Securities and Obligations of U.S. Government Authorities and Agencies		Foreign Government Bonds			U.S. Corporate Public Securities			U.S. Corporate Private Securities			Foreign Corporate Public Securities		Foreign Corporate Private Securities
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	0	$	87		$	15,598		$	124,864		$	0	$	11,527
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0		0			15			(2,976		)	0		(99		)
Asset management fees and other income	0		0			0			0			0		0
Included in other comprehensive income (loss)	0		0			(15		)	(1,769		)	13		152
Net investment income	0		0			20			6,329			0		34
Purchases	3,093		0			0			1,348			0		80
Sales	0		0			(14,026		)	(341		)	0		0
Issuances	0		0			0			0			0		0
Settlements	0		0			(976		)	(6,987		)	0		0
Transfers into Level 3(1)	0		0			2,350			5,322			675		2,293
Transfers out of Level 3(1)	0		(87		)	(1,433		)	0			0		(3,248		)
Other(5)	973		0			(974		)	(3,014		)	0		(14		)
Fair Value, end of period assets/(liabilities)	$	4,066	$	0		$	559		$	122,776		$	688	$	10,725
Unrealized gains (losses) for assets/liabilities still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0		$	0		$	(2,194	)	$	0	$	(83	)
Asset management fees and other income	$	0	$	0		$	0		$	0		$	0	$	0

	Nine Months Ended September 30, 2017
	Fixed Maturities, Available-For-Sale
	Asset-Backed Securities(3)			Trading Account Assets -Equity Securities		Equity Securities, Available-For-Sale			Short-Term Investments			Cash Equivalents
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	31,735		$	4,864	$	0		$	450		$	375
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(4)	535			0		0			0			0
Asset management fees and other income	0			1,268		0			0			0
Included in other comprehensive income (loss)	(35		)	0		351			0			0
Net investment income	163			0		0			0			0
Purchases	228,719			0		0			75			0
Sales	(1,595		)	0		0			0			0
Issuances	0			0		0			0			0
Settlements	(49,272		)	0		0			0			0
Transfers into Level 3(1)	94,979			0		0			0			0
Transfers out of Level 3(1)	(27,991		)	0		0			0			0
Other(5)	0			4,205		(351		)	(450		)	(375		)
Fair Value, end of period assets/(liabilities)	$	277,238		$	10,337	$	0		$	75		$	0
Unrealized gains (losses) for assets/liabilities still held(2):
Included in earnings:
Realized investment gains (losses), net	$	(1	)	$	0	$	0		$	0		$	0
Asset management fees and other income	$	0		$	917	$	0		$	0		$	0

	Nine Months Ended September 30, 2017
	Other Long-term Investments		Reinsurance Recoverables			Receivables from Parent and Affiliates			Future Policy Benefits
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	0	$	240,091		$	33,962		$	(7,707,333	)
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(4)	0		(12,834		)	0			455,564
Asset management fees and other income	0		0			0			0
Included in other comprehensive income (loss)	0		0			0			0
Net investment income	0		0			0			0
Purchases	0		14,659			0			0
Sales	0		0			0			0
Issuances	0		0			0			(747,282		)
Settlements	0		0			0			0
Transfers into Level 3(1)	0		0			0			0
Transfers out of Level 3(1)	0		0			(33,962		)	0
Other(5)	0		465			0			0
Fair Value, end of period assets/(liabilities)	$	0	$	242,381		$	0		$	(7,999,051	)
Unrealized gains (losses) for assets/liabilities still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	(7,021	)	$	0		$	274,784
Asset management fees and other income	$	0	$	0		$	0		$	0

	Three months ended September 30, 2016
	Fixed Maturities, Available-For-Sale(4)
	U.S. Corporate Public Securities		U.S. Corporate Private Securities			Foreign Corporate Public Securities			Foreign Corporate Private Securities			Asset-Backed Securities(3)			Trading Account Assets - Equity Securities
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	15,000	$	126,673		$	0		$	14,582		$	87,371		$	5,076
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0		42			0			877			(28		)	0
Asset management fees and other income	0		0			0			0			0			439
Included in other comprehensive income (loss)	0		(661		)	1			(710		)	329			0
Net investment income	0		1,417			(1		)	58			37			0
Purchases	0		1,245			0			1			7,820			(1		)
Sales	0		0			0			0			(6,489		)	0
Issuances	0		0			0			0			0			0
Settlements	0		(1,057		)	0			(5,390		)	(45		)	0
Transfers into Level 3(1)	0		0			129			0			7,137			0
Transfers out of Level 3(1)	0		0			0			(490		)	(51,690		)	0
Other(5)	0		0			0			0			0			0
Fair Value, end of period assets/(liabilities)	$	15,000	$	127,659		$	129		$	8,928		$	44,442		$	5,514
Unrealized gains (losses) for assets/(liabilities) still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0		$	0		$	0		$	(26	)	$	0
Asset management fees and other income	$	0	$	0		$	0		$	0		$	0		$	437

	Three months ended September 30, 2016
	Short-Term Investments		Cash Equivalents			Reinsurance Recoverables			Receivables from Parent and Affiliates			Future Policy Benefits
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	450	$	375		$	345,918		$	2,776		$	(12,326,533	)
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(4)	0		0			(15,688		)	(23		)	528,717
Asset management fees and other income	0		0			0			0			0
Included in other comprehensive income (loss)	0		0			0			19			0
Net investment income	0		150			0			0			0
Purchases	0		(150		)	4,959			0			0
Sales	0		0			0			24			0
Issuances	0		0			0			0			(243,012		)
Settlements	0		0			0			0			0
Transfers into Level 3(1)	0		0			0			0			0
Transfers out of Level 3(1)	0		0			0			(1		)	0
Other(5)	0		0			0			0			0
Fair Value, end of period assets/(liabilities)	$	450	$	375		$	335,189		$	2,795		$	(12,040,828	)
Unrealized gains (losses) for assets/(liabilities) still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0		$	(10,472	)	$	(1,772	)	$	460,383
Asset management fees and other income	$	0	$	0		$	0		$	0		$	0

	Nine Months Ended September 30, 2016
	Fixed Maturities, Available-For-Sale(4)
	U.S. Corporate Public Securities		U.S. Corporate Private Securities			Foreign Corporate Public Securities			Foreign Corporate Private Securities			Asset-Backed Securities(3)			Trading Account Assets - Equity Securities
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	15,000	$	107,777		$	0		$	4,531		$	46,493		$	0
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0		(920		)	0			877			(26		)	0
Asset management fees and other income	0		0			0			0			0			527
Included in other comprehensive income (loss)	0		(3,548		)	1			277			367			0
Net investment income	0		4,198			(1		)	185			125			0
Purchases	0		12,472			0			1,990			61,939			3,422
Sales	0		0			0			0			(6,739		)	0
Issuances	0		0			0			0			0			0
Settlements	0		(1,481		)	0			(7,128		)	(533		)	0
Transfers into Level 3(1)	0		10,176			129			8,686			24,961			0
Transfers out of Level 3(1)	0		(1,015		)	0			(490		)	(82,145		)	0
Other(5)	0		0			0			0			0			1,565
Fair Value, end of period assets/(liabilities)	$	15,000	$	127,659		$	129		$	8,928		$	44,442		$	5,514
Unrealized gains (losses) for assets/(liabilities) still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	(962	)	$	0		$	0		$	(26	)	$	0
Asset management fees and other income	$	0	$	0		$	0		$	0		$	0		$	526

	Nine Months Ended September 30, 2016
	Short-Term Investments		Cash Equivalents		Other Long- Term Investments			Reinsurance Recoverables			Receivables from Parent and Affiliates			Future Policy Benefits
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	450	$	225	$	1,565		$	3,012,653		$	7,664		$	(3,134,077	)
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(4)	0		0		0			(2,742,989		)	(11		)	(8,369,767		)
Asset management fees and other income	0		0		0			0			0			0
Included in other comprehensive income (loss)	0		0		0			0			88			0
Net investment income	0		150		0			0			0			0
Purchases	0		0		0			65,525			0			0
Sales	0		0		0			0			(1,988		)	0
Issuances	0		0		0			0			0			(536,984		)
Settlements	0		0		0			0			0			0
Transfers into Level 3(1)	0		0		0			0			0			0
Transfers out of Level 3(1)	0		0		0			0			(2,958		)	0
Other(5)	0		0		(1,565		)	0			0			0
Fair Value, end of period assets/(liabilities)	$	450	$	375	$	0		$	335,189		$	2,795		$	(12,040,828	)
Unrealized gains (losses) for assets/(liabilities) still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0	$	0		$	91,513		$	(1,772	)	$	(8,124,372	)
Asset management fees and other income	$	0	$	0	$	0		$	0		$	0		$	0

(1) Transfers into or out of any level are generally reported at the value as of the beginning of the quarter in which the transfer occurs for any such assets still held at the end of the quarter.

(2) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.

(3) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(4) Realized investment gains (losses) on Future Policy Benefits and Reinsurance Recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. Refer to Note 1 for impacts to Realized investment gains (losses) related to the Variable Annuities Recapture for the three and nine months ended September 30, 2016.

(5) Other primarily represents reclassifications of certain assets and liabilities between reporting categories.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on the significance of the unobservable inputs in the overall fair value measurement. Transfers into Level 3 are generally the result of unobservable inputs utilized within the valuation methodologies or the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. For further information on valuation processes, see Note 10 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

	Three Months Ended September 30, 2017
	Fixed Maturities, Available-For-Sale
	U.S Treasury Securities and Obligations of U.S. Government Authorities and Agencies			Foreign Government Bonds		U.S. Corporate Public Securities			U.S. Corporate Private Securities			Foreign Corporate Public Securities		Foreign Corporate Private Securities
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	3,151		$	0	$	1,911		$	122,609		$	0	$	9,047
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0			0		11			(940		)	0		(16		)
Asset management fees and other income	0			0		0			0			0		0
Included in other comprehensive income (loss)	0			0		0			(1,659		)	13		(624		)
Net investment income	0			0		5			1,510			0		11
Purchases	917			0		0			306			0		28
Sales	0			0		0			0			0		0
Issuances	0			0		0			0			0		0
Settlements	0			0		(312		)	(1,358		)	0		0
Transfers into Level 3(1)	0			0		0			5,322			675		2,293
Transfers out of Level 3(1)	0			0		(1,056		)	0			0		0
Other(5)	(2		)	0		0			(3,014		)	0		(14		)
Fair Value, end of period assets/(liabilities)	$	4,066		$	0	$	559		$	122,776		$	688	$	10,725
Unrealized gains (losses) for assets/liabilities still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0		$	0	$	0		$	0		$	0	$	0
Asset management fees and other income	$	0		$	0	$	0		$	0		$	0	$	0

	Three Months Ended September 30, 2017
	Fixed Maturities, Available-For-Sale
	Asset-Backed Securities (3)			Trading Account Assets -Equity Securities		Equity Securities, Available-For-Sale		Short-Term Investments			Cash Equivalents
				(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	215,503		$	5,854	$	0	$	450		$	375
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(4)	527			0		0		0			0
Asset management fees and other income	0			630		0		0			0
Included in other comprehensive income (loss)	(306		)	0		0		0			0
Net investment income	111			0		0		0			0
Purchases	78,112			0		0		75			0
Sales	0			0		0		0			0
Issuances	0			0		0		0			0
Settlements	(6,720		)	0		0		0			0
Transfers into Level 3(1)	2,513			0		0		0			0
Transfers out of Level 3(1)	(12,502		)	0		0		0			0
Other(5)	0			3,853		0		(450		)	(375		)
Fair Value, end of period assets/(liabilities)	$	277,238		$	10,337	$	0	$	75		$	0
Unrealized gains (losses) for assets/liabilities still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0		$	0	$	0	$	0		$	0
Asset management fees and other income	$	0		$	630	$	0	$	0		$	0

	Three Months Ended September 30, 2017
	Other Long-term Investments		Reinsurance Recoverables			Receivables from Parent and Affiliates		Future Policy Benefits
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	0	$	268,337		$	0	$	(9,331,040	)
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(4)	0		(33,779		)	0		1,584,013
Asset management fees and other income	0		0			0		0
Included in other comprehensive income (loss)	0		0			0		0
Net investment income	0		0			0		0
Purchases	0		4,875			0		0
Sales	0		0			0		0
Issuances	0		0			0		(252,024		)
Settlements	0		0			0		0
Transfers into Level 3(1)	0		0			0		0
Transfers out of Level 3(1)	0		0			0		0
Other(5)	0		2,948			0		0
Fair Value, end of period assets/(liabilities)	$	0	$	242,381		$	0	$	(7,999,051	)
Unrealized gains (losses) for assets/liabilities still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	(31,836	)	$	0	$	1,503,393
Asset management fees and other income	$	0	$	0		$	0	$	0

	Nine Months Ended September 30, 2017
	Fixed Maturities, Available-For-Sale
	U.S Treasury Securities and Obligations of U.S. Government Authorities and Agencies		Foreign Government Bonds			U.S. Corporate Public Securities			U.S. Corporate Private Securities			Foreign Corporate Public Securities		Foreign Corporate Private Securities
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	0	$	87		$	15,598		$	124,864		$	0	$	11,527
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0		0			15			(2,976		)	0		(99		)
Asset management fees and other income	0		0			0			0			0		0
Included in other comprehensive income (loss)	0		0			(15		)	(1,769		)	13		152
Net investment income	0		0			20			6,329			0		34
Purchases	3,093		0			0			1,348			0		80
Sales	0		0			(14,026		)	(341		)	0		0
Issuances	0		0			0			0			0		0
Settlements	0		0			(976		)	(6,987		)	0		0
Transfers into Level 3(1)	0		0			2,350			5,322			675		2,293
Transfers out of Level 3(1)	0		(87		)	(1,433		)	0			0		(3,248		)
Other(5)	973		0			(974		)	(3,014		)	0		(14		)
Fair Value, end of period assets/(liabilities)	$	4,066	$	0		$	559		$	122,776		$	688	$	10,725
Unrealized gains (losses) for assets/liabilities still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0		$	0		$	(2,194	)	$	0	$	(83	)
Asset management fees and other income	$	0	$	0		$	0		$	0		$	0	$	0

	Nine Months Ended September 30, 2017
	Fixed Maturities, Available-For-Sale
	Asset-Backed Securities(3)			Trading Account Assets -Equity Securities		Equity Securities, Available-For-Sale			Short-Term Investments			Cash Equivalents
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	31,735		$	4,864	$	0		$	450		$	375
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(4)	535			0		0			0			0
Asset management fees and other income	0			1,268		0			0			0
Included in other comprehensive income (loss)	(35		)	0		351			0			0
Net investment income	163			0		0			0			0
Purchases	228,719			0		0			75			0
Sales	(1,595		)	0		0			0			0
Issuances	0			0		0			0			0
Settlements	(49,272		)	0		0			0			0
Transfers into Level 3(1)	94,979			0		0			0			0
Transfers out of Level 3(1)	(27,991		)	0		0			0			0
Other(5)	0			4,205		(351		)	(450		)	(375		)
Fair Value, end of period assets/(liabilities)	$	277,238		$	10,337	$	0		$	75		$	0
Unrealized gains (losses) for assets/liabilities still held(2):
Included in earnings:
Realized investment gains (losses), net	$	(1	)	$	0	$	0		$	0		$	0
Asset management fees and other income	$	0		$	917	$	0		$	0		$	0

	Nine Months Ended September 30, 2017
	Other Long-term Investments		Reinsurance Recoverables			Receivables from Parent and Affiliates			Future Policy Benefits
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	0	$	240,091		$	33,962		$	(7,707,333	)
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(4)	0		(12,834		)	0			455,564
Asset management fees and other income	0		0			0			0
Included in other comprehensive income (loss)	0		0			0			0
Net investment income	0		0			0			0
Purchases	0		14,659			0			0
Sales	0		0			0			0
Issuances	0		0			0			(747,282		)
Settlements	0		0			0			0
Transfers into Level 3(1)	0		0			0			0
Transfers out of Level 3(1)	0		0			(33,962		)	0
Other(5)	0		465			0			0
Fair Value, end of period assets/(liabilities)	$	0	$	242,381		$	0		$	(7,999,051	)
Unrealized gains (losses) for assets/liabilities still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	(7,021	)	$	0		$	274,784
Asset management fees and other income	$	0	$	0		$	0		$	0

	Three months ended September 30, 2016
	Fixed Maturities, Available-For-Sale(4)
	U.S. Corporate Public Securities		U.S. Corporate Private Securities			Foreign Corporate Public Securities			Foreign Corporate Private Securities			Asset-Backed Securities(3)			Trading Account Assets - Equity Securities
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	15,000	$	126,673		$	0		$	14,582		$	87,371		$	5,076
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0		42			0			877			(28		)	0
Asset management fees and other income	0		0			0			0			0			439
Included in other comprehensive income (loss)	0		(661		)	1			(710		)	329			0
Net investment income	0		1,417			(1		)	58			37			0
Purchases	0		1,245			0			1			7,820			(1		)
Sales	0		0			0			0			(6,489		)	0
Issuances	0		0			0			0			0			0
Settlements	0		(1,057		)	0			(5,390		)	(45		)	0
Transfers into Level 3(1)	0		0			129			0			7,137			0
Transfers out of Level 3(1)	0		0			0			(490		)	(51,690		)	0
Other(5)	0		0			0			0			0			0
Fair Value, end of period assets/(liabilities)	$	15,000	$	127,659		$	129		$	8,928		$	44,442		$	5,514
Unrealized gains (losses) for assets/(liabilities) still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0		$	0		$	0		$	(26	)	$	0
Asset management fees and other income	$	0	$	0		$	0		$	0		$	0		$	437

	Three months ended September 30, 2016
	Short-Term Investments		Cash Equivalents			Reinsurance Recoverables			Receivables from Parent and Affiliates			Future Policy Benefits
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	450	$	375		$	345,918		$	2,776		$	(12,326,533	)
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(4)	0		0			(15,688		)	(23		)	528,717
Asset management fees and other income	0		0			0			0			0
Included in other comprehensive income (loss)	0		0			0			19			0
Net investment income	0		150			0			0			0
Purchases	0		(150		)	4,959			0			0
Sales	0		0			0			24			0
Issuances	0		0			0			0			(243,012		)
Settlements	0		0			0			0			0
Transfers into Level 3(1)	0		0			0			0			0
Transfers out of Level 3(1)	0		0			0			(1		)	0
Other(5)	0		0			0			0			0
Fair Value, end of period assets/(liabilities)	$	450	$	375		$	335,189		$	2,795		$	(12,040,828	)
Unrealized gains (losses) for assets/(liabilities) still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0		$	(10,472	)	$	(1,772	)	$	460,383
Asset management fees and other income	$	0	$	0		$	0		$	0		$	0

	Nine Months Ended September 30, 2016
	Fixed Maturities, Available-For-Sale(4)
	U.S. Corporate Public Securities		U.S. Corporate Private Securities			Foreign Corporate Public Securities			Foreign Corporate Private Securities			Asset-Backed Securities(3)			Trading Account Assets - Equity Securities
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	15,000	$	107,777		$	0		$	4,531		$	46,493		$	0
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0		(920		)	0			877			(26		)	0
Asset management fees and other income	0		0			0			0			0			527
Included in other comprehensive income (loss)	0		(3,548		)	1			277			367			0
Net investment income	0		4,198			(1		)	185			125			0
Purchases	0		12,472			0			1,990			61,939			3,422
Sales	0		0			0			0			(6,739		)	0
Issuances	0		0			0			0			0			0
Settlements	0		(1,481		)	0			(7,128		)	(533		)	0
Transfers into Level 3(1)	0		10,176			129			8,686			24,961			0
Transfers out of Level 3(1)	0		(1,015		)	0			(490		)	(82,145		)	0
Other(5)	0		0			0			0			0			1,565
Fair Value, end of period assets/(liabilities)	$	15,000	$	127,659		$	129		$	8,928		$	44,442		$	5,514
Unrealized gains (losses) for assets/(liabilities) still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	(962	)	$	0		$	0		$	(26	)	$	0
Asset management fees and other income	$	0	$	0		$	0		$	0		$	0		$	526

	Nine Months Ended September 30, 2016
	Short-Term Investments		Cash Equivalents		Other Long- Term Investments			Reinsurance Recoverables			Receivables from Parent and Affiliates			Future Policy Benefits
	(in thousands)
Fair Value, beginning of period assets/(liabilities)	$	450	$	225	$	1,565		$	3,012,653		$	7,664		$	(3,134,077	)
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(4)	0		0		0			(2,742,989		)	(11		)	(8,369,767		)
Asset management fees and other income	0		0		0			0			0			0
Included in other comprehensive income (loss)	0		0		0			0			88			0
Net investment income	0		150		0			0			0			0
Purchases	0		0		0			65,525			0			0
Sales	0		0		0			0			(1,988		)	0
Issuances	0		0		0			0			0			(536,984		)
Settlements	0		0		0			0			0			0
Transfers into Level 3(1)	0		0		0			0			0			0
Transfers out of Level 3(1)	0		0		0			0			(2,958		)	0
Other(5)	0		0		(1,565		)	0			0			0
Fair Value, end of period assets/(liabilities)	$	450	$	375	$	0		$	335,189		$	2,795		$	(12,040,828	)
Unrealized gains (losses) for assets/(liabilities) still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0	$	0		$	91,513		$	(1,772	)	$	(8,124,372	)
Asset management fees and other income	$	0	$	0	$	0		$	0		$	0		$	0

(1) Transfers into or out of any level are generally reported at the value as of the beginning of the quarter in which the transfer occurs for any such assets still held at the end of the quarter.

(2) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.

(3) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(4) Realized investment gains (losses) on Future Policy Benefits and Reinsurance Recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. Refer to Note 1 for impacts to Realized investment gains (losses) related to the Variable Annuities Recapture for the three and nine months ended September 30, 2016.

(5) Other primarily represents reclassifications of certain assets and liabilities between reporting categories.

Fair Value Disclosure Financial Instruments Not Carried at Fair Value

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. For additional information regarding the methods and significant assumptions used to estimate their fair value, see Note 10 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

	September 30, 2017(1)
	Fair Value								Carrying Amount(2)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,425,278	$	1,425,278	$	1,408,660
Policy loans	0		0		12,644		12,644		12,644
Short-term investments	0		0		0		0		0
Cash and cash equivalents	340,610		0		0		340,610		340,610
Accrued investment income	0		69,741		0		69,741		69,741
Reinsurance recoverables	0		0		60,083		60,083		60,083
Receivables from parent and affiliates	0		16,469		0		16,469		16,469
Other assets	0		14,710		0		14,710		14,710
Total assets	$	340,610	$	100,920	$	1,498,005	$	1,939,535	$	1,922,917
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	0	$	272,416	$	272,416	$	270,411
Cash collateral for loaned securities	0		7,835		0		7,835		7,835
Short-term debt	0		0		0		0		0
Long-term debt	0		1,009,668		0		1,009,668		971,899
Reinsurance payables	0		0		60,083		60,083		60,083
Payables to parent and affiliates	0		51,270		0		51,270		51,270
Other liabilities	0		201,592		0		201,592		201,592
Separate account liabilities - investment contracts	0		106		0		106		106
Total liabilities	$	0	$	1,270,471	$	332,499	$	1,602,970	$	1,563,196

	December 31, 2016(1)
	Fair Value								Carrying Amount(2)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,235,842	$	1,235,842	$	1,231,893
Policy loans	0		0		12,719		12,719		12,719
Short-term investments	0		35,000		0		35,000		35,000
Cash and cash equivalents	6,886		255,000		0		261,886		261,886
Accrued investment income	0		86,004		0		86,004		86,004
Reinsurance recoverables	0		0		63,775		63,775		63,775
Receivables from parent and affiliates	0		70,779		0		70,779		70,779
Other assets	0		53,858		0		53,858		53,858
Total assets	$	6,886	$	500,641	$	1,312,336	$	1,819,863	$	1,815,914
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	0	$	247,986	$	247,986	$	250,493
Cash collateral for loaned securities	0		23,350		0		23,350		23,350
Short-term debt	0		28,146		0		28,146		28,101
Long-term debt	0		994,198		0		994,198		971,899
Reinsurance payables	0		0		63,775		63,775		63,775
Payables to parent and affiliates	0		91,432		0		91,432		91,432
Other liabilities	0		189,366		0		189,366		189,366
Separate account liabilities - investment contracts	0		187		0		187		187
Total liabilities	$	0	$	1,326,679	$	311,761	$	1,638,440	$	1,618,603

(1) Other long-term investments excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at NAV per share (or its equivalent) as a practical expedient. At September 30, 2017 and December 31, 2016, the fair values of these cost method investments were $5.6 million and $3.4 million, respectively. The carrying values of these investments were $5.2 million and $3.1 million as of September 30, 2017 and December 31, 2016, respectively.

(2) Carrying values presented herein differ from those in the Company’s Unaudited Interim Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.