Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value of Assets and Liabilities [Abstract]

Fair Value, Assets and Liabilities Measured on Recurring Basis

		As of December 31, 2012
		Level 1		Level 2		Level 3			Netting (2)	Total
		(in thousands)
Fixed maturities, available-for-sale:
	U.S Treasury securities and obligations of U.S. government authorities and agencies	$	-	$	4,686	$	-	$	-	$	4,686
	Obligations of U.S. states and their political subdivisions		-		102,116		-		-		102,116
	Foreign government bonds		-		55,529		-		-		55,529
	Corporate securities		-		3,095,699		95,555		-		3,191,254
	Asset-backed securities		-		118,179		69,298		-		187,477
	Commercial mortgage-backed securities		-		394,902		-		-		394,902
	Residential mortgage-backed securities		-		267,486		-		-		267,486
Sub-total			-		4,038,597		164,853		-		4,203,450
Trading account assets:
	Asset-backed securities		-		2,022		-		-		2,022
	Equity securities		5,687		-		207		-		5,894
Sub-total			5,687		2,022		207		-		7,916
Equity securities, available-for-sale			-		22		-		-		22
Short-term investments			103,761		-		-		-		103,761
Cash equivalents			-		-		-		-		-
Other long-term investments			-		173,348		1,054		(42,351)		132,051
Reinsurance recoverables			-		-		1,732,094		-		1,732,094
Other assets			-		20,632		1,995		-		22,627
Sub-total excluding separate account assets			109,448		4,234,621		1,900,203		(42,351)		6,201,921
Separate account assets (1)			122,142		44,479,578		-		-		44,601,720
Total assets		$	231,590	$	48,714,199	$	1,900,203	$	(42,351)	$	50,803,641
Future policy benefits		$	-	$	-	$	1,793,137	$	-	$	1,793,137
Other liabilities			-		42,351		-		(42,351)		-
Total liabilities		$	-	$	42,351	$	1,793,137	$	(42,351)	$	1,793,137

		As of December 31, 2011 (3)
		Level 1		Level 2		Level 3			Netting (2)	Total
		(in thousands)
Fixed maturities, available-for-sale:
	U.S Treasury securities and obligations of U.S. government authorities and agencies	$	-	$	86,036	$	-	$	-	$	86,036
	Obligations of U.S. states and their political subdivisions		-		94,158		-		-		94,158
	Foreign government securities		-		77,230		-		-		77,230
	Corporate securities		6,705		3,854,846		89,658		-		3,951,209
	Asset-backed securities		-		128,821		48,563		-		177,384
	Commercial mortgage-backed securities		-		491,757		-		-		491,757
	Residential mortgage-backed securities		-		395,993		-		-		395,993
Sub-total			6,705		5,128,841		138,221		-		5,273,767
Trading account assets:
	Asset-backed securities		-		31,571		-		-		31,571
	Equity securities		6,804		-		203		-		7,007
Sub-total			6,804		31,571		203		-		38,578
Equity securities, available-for-sale			3,071		-		-		-		3,071
Short-term investments			227,235		10,366		-		-		237,601
Cash equivalents			8,112		-		-		-		8,112
Other long-term investments			-		191,144		1,213		(40,012)		152,345
Reinsurance recoverables			-		-		1,747,757		-		1,747,757
Other assets			-		25,225		-		-		25,225
Sub-total excluding separate account assets			251,927		5,387,147		1,887,394		(40,012)		7,486,456
Separate account assets (1)			1,039,821		41,902,937		-		-		42,942,758
Total assets		$	1,291,748	$	47,290,084	$	1,887,394	$	(40,012)	$	50,429,214
Future policy benefits		$	-	$	-	$	1,783,595	$	-	$	1,783,595
Other liabilities			-		40,012		-		(40,012)		-
Total liabilities		$	-	$	40,012	$	1,783,595	$	(40,012)	$	1,783,595

• 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 Statements of Financial Position.
• “Netting” amounts represent the impact of offsetting asset and liability positions held with the same counterparty.
• Includes reclassifications to conform to current period presentation.

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

				Year Ended December 31, 2012
				Fixed Maturities Available-For-Sale					Trading Account Assets - Equity Securities
				Corporate Securities		Asset- Backed Securities					Other Long Term Investments		Reinsurance Recoverables
				(in thousands)
Fair Value, beginning of period assets/(liabilities)				$	89,658	$	48,563	$	203	$	1,213	$	1,747,757
	Total gains (losses) (realized/unrealized):
		Included in earnings:
			Realized investment gains (losses), net		1,606		-		-		(2,326)		(244,519)
			Asset management fees and other income		-		-		4		(3)		-
		Included in other comprehensive income (loss)			2,271		1,109		-		-		-
	Net investment income				4,634		649		-		-		-
	Purchases				5,400		30,311		-		2,166		228,856
	Sales				(29)		-		-		-		-
	Issuances				-		-		-		-		-
	Settlements				(8,286)		(11,334)		-		4		-
	Transfers into Level 3 (1)				11,992		-		-		-		-
	Transfers out of Level 3 (1)				(11,691)		-		-		-		-
Fair Value, end of period assets/(liabilities)				$	95,555	$	69,298	$	207	$	1,054	$	1,732,094
Unrealized gains (losses) for the period relating to those
	Level 3 assets that were still held at the end of the period (2):
		Included in earnings:
			Realized investment gains (losses), net	$	-	$	-	$	-	$	(1,349)	$	(194,274)
			Asset management fees and other income	$	-	$	-	$	4	$	(3)	$	-
			Interest credited to policyholders' account balances	$	-	$	-	$	-	$	-	$	-
				Year Ended December 31, 2012
				Other Assets		Future Policy Benefits
				(in thousands)
Fair Value, beginning of period assets/(liabilities)				$	-	$	(1,783,595)
	Total gains (losses) (realized/unrealized):
		Included in earnings:
			Realized investment gains (losses), net		-		230,349
			Asset management fees and other income		-		-
			Interest credited to policyholder account balances
		Included in other comprehensive income (loss)			(5)		-
	Net investment income				-		-
	Purchases				2,000		-
	Sales				-		-
	Issuances				-		(239,891)
	Settlements				-		-
	Transfers into Level 3 (1)				-		-
	Transfers out of Level 3 (1)				-		-
Fair Value, end of period assets/(liabilities)				$	1,995	$	(1,793,137)
Unrealized gains (losses) for the period relating to those
	Level 3 assets that were still held at the end of the period (2):
		Included in earnings:
			Realized investment gains (losses), net	$	-	$	179,477
			Asset management fees and other income	$	-	$	-
			Interest credited to policyholders' account balances	$	-	$	-

					Year Ended December 31, 2011
					Fixed Maturities Available-For-Sale
					Corporate Securities			Asset Backed Securities		Equity Securities - Available-For-Sale		Other Long-Term Investments		Reinsurance Recoverable	Trading Account Assets - Equity Securities
					(in thousands)
Fair Value, beginning of period assets/(liabilities)					$	74,255	$	53,857	$	-	$	-	$	186,735	$	-
	Total gains or (losses) (realized/unrealized):
		Included in earnings:
			Realized investment gains (losses), net			46		-		-		(1,285)		1,348,271		-
			Asset management fees and other income			-		-		-		(19)		-		(27)
		Included in other comprehensive income (loss)				5,472		206		-		-		-		-
	Net investment income					4,579		430		1		-		-		-
	Purchases					8,702		-		-		262		212,751		-
	Sales					-		-		(747)		-		-		-
	Issuances					-		-		-		-		-		-
	Settlements					(5,356)		(5,930)		-		-		-		-
	Transfers into Level 3 (1)					51,135		-		976		2,255		-		-
	Transfers out of Level 3 (1)					(49,175)		-		-		-		-		-
	Other (3)					-		-		(230)		-		-		230
Fair Value, end of period assets/(liabilities)					$	89,658	$	48,563	$	-	$	1,213	$	1,747,757	$	203
Unrealized gains (losses) for the period relating to those
	Level 3 assets that were still held
	at the end of the period (2):
		Included in earnings:
			Realized investment gains (losses), net		$	-	$	-	$	-	$	(1,311)	$	1,356,358	$	-
			Asset management fees and other income		$	-	$	-	$	-	$	(19)	$	-	$	(27)
				Year Ended December 31, 2011
				Future Policy Benefits
				(in thousands)
Fair Value, beginning of period assets/(liabilities)					$	(164,283)
	Total gains or (losses) (realized/unrealized):
		Included in earnings:
			Realized investment gains (losses), net			(1,396,276)
			Purchases			-
			Sales			(223,036)
			Issuances			-
			Settlements			-
			Transfers into Level 3 (1)			-
			Transfers out of Level 3 (1)			-
Fair Value, end of period assets/(liabilities)					$	(1,783,595)
Unrealized gains (losses) for the period relating to
	Level 3 assets that were still held
	at the end of the period (2):
		Included in earnings:
			Realized investment gains (losses), net		$	(1,403,609)
			Interest credited to policyholders' account balances		$	-

					Year Ended December 31, 2010
					Fixed Maturities Available-For-Sale
					Corporate Securities			Foreign Government Bonds		Asset Backed Securities		Reinsurance Recoverable
					(in thousands)
Fair Value, beginning of period assets/(liabilities)					$	63,634	$	1,219	$	43,794	$	40,351	$
	Total gains or (losses) (realized/unrealized):
		Included in earnings:
			Realized investment gains (losses), net			1,083		-		(1,247)		(43,339)
			Asset management fees and other income			-		-		-		-
		Included in other comprehensive income (loss)				3,072		(12)		(963)		-
	Net investment income					4,195		(1)		17		-
	Purchases, sales issuances, and settlements					(10,830)				29,676		189,723
	Sales
	Issuances
	Settlements
	Transfers into Level 3 (1)					13,101		-		-		-
	Transfers out of Level 3 (1)					-		(1,206)		(17,420)		-
	Other
Fair Value, end of period assets/(liabilities)					$	74,255	$	-	$	53,857	$	186,735	$
Unrealized gains (losses) for the period relating to those
	Level 3 assets that were still held
	at the end of the period (2):
		Included in earnings:
			Realized investment gains (losses), net		$	-	$	-	$	(654)	$	(40,069)
			Asset management fees and other income		$	-	$	-	$	-	$	-
				Year Ended December 31, 2010
				Future Policy Benefits				Other Liabilities
				(in thousands)
Fair Value, beginning of period assets/(liabilities)					$	(10,874)		(53)
	Total gains or (losses) (realized/unrealized):
		Included in earnings:
			Realized investment gains (losses), net			45,258		53
			Purchases, sales issuances, and settlements			(198,667)		-
			Sales			-		-
			Issuances			-		-
			Settlements			-		-
			Transfers into Level 3 (1)			-		-
			Transfers out of Level 3 (1)			-		-
Fair Value, end of period assets/(liabilities)					$	(164,283)		-
Unrealized gains (losses) for the period relating to
	Level 3 assets that were still held
	at the end of the period (2):
		Included in earnings:
			Realized investment gains (losses), net		$	42,759		-
			Interest credited to policyholders' account balances		$	-		-

(1) Transfers into or out of Level 3 are generally reported as the value as of the beginning of the quarter in which the transfer occurs.

(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) Other primarily represents reclasses of certain assets between reporting categories.

Fair Value Disclosure Financial Instruments Not Carried at Fair Value

				December 31, 2012										December 31, 2011
				Fair Value								Carrying Amount (1)		Fair Value		Carrying Amount
				Level 1		Level 2		Level 3		Total		Total		Total		Total
			(in thousands)
Assets:
	Commercial mortgage and other loans		$	-	$	-	$	473,964	$	473,964	$	426,981	$	490,151	$	449,359
	Policy loans			-		-		11,957		11,957		11,957		14,316		14,316
	Cash			266		-		-		266		266		749		749
	Accrued investment income			-		44,656		-		44,656		44,656		59,033		59,033
	Other assets			-		10,614		1,995		12,609		12,609		12,237		12,237
		Total assets	$	266	$	55,270	$	487,916	$	543,452	$	496,469	$	576,486	$	535,694
Liabilities:
	Policyholders' Account Balances - Investment contracts		$	-	$	-	$	78,159	$	78,159	$	75,242	$	66,659	$	66,176
	Cash collateral for loaned securities			-		38,976		-		38,976		38,976		125,884		125,884
	Short-term debt			-		-		-		-		-		27,803		27,803
	Long-term debt			-		426,827		-		426,827		400,000		627,415		600,000
	Other liabilities			-		194,047		-		194,047		194,047		169,139		169,139
	Separate account liabilities - investment contracts			-		964		-		964		964		1,192		1,192
		Total liabilities	$	-	$	660,814	$	78,159	$	738,973	$	709,229	$	1,018,092	$	990,194
		(1) Carrying values presented herein differ from those in the Company’s 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. Financial statement captions excluded from the above table are not considered financial instruments.

Fair Value Inputs Quantitative Information [Table Text Block]

	As of December 31, 2012
		Fair Value	Valuation Techniques	Unobservable Inputs	Range (Weighted Average)	Impact of Increase in Input on Fair Value (1)
	(in thousands)
Assets:
Corporate securities	$	92,263	Discounted cash flow	Discount rate	3.27 - 17.50% (3.74%)	Decrease
			Cap at call price	Call price	100% (100%)	Increase
Reinsurance recoverables	$	1,732,094	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits	$	1,793,137	Discounted cash flow	Lapse rate (2)	0% - 14%	Decrease
				NPR spread (3)	0.20% - 1.60%	Decrease
				Utilization rate (4)	70% - 94%	Increase
				Withdrawal rate (5)	85% - 100%	Increase
				Mortality rate (6)	0% - 13%	Decrease
				Equity Volatility curve	19% - 34%	Increase

• Conversely, the impact of a decrease in input would have the opposite impact for the fair value as that presented in the table.
• Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed amount and the current policyholder account value as well as other factors, such as the applicability of any surrender charges. A dynamic lapse adjustment reduces the base lapse rate when the guaranteed amount is greater than the account value, as in-the-money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower for the period where surrender charges apply.
• To reflect NPR, the Company incorporates an additional spread over LIBOR into the discount rate used in the valuation of individual living benefit contracts in a liability position and generally not to those in a contra-liability position. In determining the NPR spread, the Company believes it appropriate to reflect the financial strength ratings of the Company as these are insurance liabilities and senior to debt. The additional spread over LIBOR is determined taking into consideration publicly available information relating to the financial strength of the Company adjusted for any illiquidity risk premium.
• 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 utilizing the benefit. These assumptions vary based on the product type, the age of the contractholder, and the age of the contract. The impact of changes in these assumptions is highly dependent on the contract type and age of the contractholder at the time of the sale and the timing of the first lifetime income withdrawal.
• The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. The fair value of the liability will generally increase the closer the withdrawal rate is to 100%.
• 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 Level Three Amounts By Pricing Source [Table Text Block]

	As of December 31, 2012
		Internal (1)		External (2)		Total
	(in thousands)
Corporate securities	$	92,263	$	3,292	$	95,555
Asset-backed securities		-		69,298		69,298
Equity securities		-		207		207
Other long-term Investments		739		315		1,054
Reinsurance recoverables		1,732,094		-		1,732,094
Other assets		-		1,995		1,995
Total assets	$	1,825,096	$	75,107	$	1,900,203
Future policy benefits		1,793,137		-		1,793,137
Total liabilities	$	1,793,137	$	-	$	1,793,137

• Represents valuations reflecting both internally-derived and market inputs, as well as third-party pricing information or quotes. See below for additional information related to internally-developed valuation for significant items in the above table.
• Represents unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available.