Investments (Tables)

3 Months Ended

Mar. 31, 2013

Investments [Abstract]

Fixed Maturities and Equity Securities, Available-for-sale Securities

			March 31, 2013
											Other-than-
						Gross		Gross			temporary
			Amortized			Unrealized		Unrealized	Fair		Impairments
			Cost			Gains		Losses	Value		in AOCI (3)
			(in thousands)
Fixed maturities, available-for-sale
U.S. Treasury securities and obligations of U.S.
	government authorities and agencies		$	4,556	$	98	$	-	$	4,654	$	-
Obligations of U.S. states and their political
	subdivisions			95,765		6,993		315		102,443		-
Foreign government bonds				30,510		9,076		-		39,586		-
Public utilities				243,597		26,724		543		269,778		-
Redeemable preferred stock				-		-		-		-		-
Corporate securities				2,470,504		244,000		734		2,713,770		-
Asset-backed securities (1)				173,529		9,618		14		183,133		(1,352)
Commercial mortgage-backed securities				379,751		21,141		315		400,577		-
Residential mortgage-backed securities (2)				223,510		10,757		-		234,267		(46)
		Total fixed maturities, available-for-sale	$	3,621,722	$	328,407	$	1,921	$	3,948,208	$	(1,398)
Equity securities, available-for-sale
Common Stocks
	Mutual Funds		$	18	$	4	$	-	$	22
	Industrial, miscellaneous & other			-		-		-		-
		Total equity securities, available-for-sale	$	18	$	4	$	-	$	22

• Includes credit-tranched securities collateralized by sub-prime mortgages, credit cards, education loans, and other asset types.
• Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
• Represents the amount of other-than-temporary impairment losses in “AOCI,” which were not included in earnings. Amount excludes $1.8 million of net unrealized gains on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.

			December 31, 2012
											Other-than-
						Gross		Gross			temporary
			Amortized			Unrealized		Unrealized	Fair		Impairments
			Cost			Gains		Losses	Value		in AOCI (3)
			(in thousands)
Fixed maturities, available-for-sale
	U.S. Treasury securities and obligations of U.S.
		government authorities and agencies	$	4,568	$	118	$	-	$	4,686	$	-
	Obligations of U.S. states and their political
		subdivisions		95,107		7,359		350		102,116		-
	Foreign government bonds			45,733		9,796		-		55,529		-
	Public utilities			253,566		29,554		569		282,551		-
	Redeemable preferred stock			2,565		697		-		3,262		-
	Corporate securities			2,622,982		283,117		658		2,905,441		-
	Asset-backed securities (1)			179,037		8,772		332		187,477		(3,514)
	Commercial mortgage-backed securities			369,187		25,725		10		394,902		-
	Residential mortgage-backed securities (2)			254,751		12,735		-		267,486		(48)
		Total fixed maturities, available-for-sale	$	3,827,496	$	377,873	$	1,919	$	4,203,450	$	(3,562)
Equity securities, available-for-sale
Common Stocks
	Mutual Funds (4)		$	18	$	4	$	-	$	22
		Total equity securities, available-for-sale	$	18	$	4	$	-	$	22

• Includes credit-tranched securities collateralized by sub-prime mortgages, credit cards, education loans, and other asset types.
• Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
• Represents the amount of other-than-temporary impairment losses in AOCI, which were not included in earnings. Amount excludes $4.1 million of net unrealized gains on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.

Investments Classified by Contractual Maturity Date

		Available-for-Sale
		Amortized		Fair
		Cost		Value
		(in thousands)
Due in one year or less		$	1,170,549	$	1,209,770
Due after one year through five years			712,092		808,650
Due after five years through ten years			509,424		589,668
Due after ten years			452,867		522,143
Asset-backed securities			173,529		183,133
Commercial mortgage-backed securities			379,751		400,577
Residential mortgage-backed securities			223,510		234,267
	Total	$	3,621,722	$	3,948,208

Sources of Fixed Maturity Proceeds, Related Investment Gains (Losses), and Losses on Impairments of Fixed Maturities and Equity Securities

		Three Months Ended
			March 31,
			2013		2012
			(in thousands)
Fixed maturities, available-for-sale
	Proceeds from sales		$	114,927	$	283,320
	Proceeds from maturities/repayments			206,415		149,141
	Gross investment gains from sales, prepayments, and maturities			2,792		7,138
	Gross investment losses from sales and maturities			(80)		(1)
Equity securities, available-for-sale
	Proceeds from sales		$	1	$	-
	Proceeds from maturities/repayments			-		-
	Gross investment gains from sales, prepayments, and maturities			1		-
	Gross investment losses from sales and maturities			-		-
Fixed maturity and equity security impairments
	Net writedowns for other-than-temporary impairment losses
	on fixed maturities recognized in earnings (1)		$	-	$	(69)

• Excludes the portion of other-than-temporary impairments recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.

Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI

		Three Months Ended
		March 31, 2013		March 31, 2012
			(in thousands)
Balance, beginning of period		$	3,381	$	3,542
Credit loss impairments previously recognized on securities which matured, paid down,
	prepaid or were sold during the period		(1,614)		(18)
Credit loss impairments previously recognized on securities impaired to fair value during the period			-		-
Credit loss impairment recognized in the current period on securities not previously impaired			-		-
Additional credit loss impairments recognized in the current period on securities previously impaired			-		69
Increases due to the passage of time on previously recorded credit losses			27		23
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected
	to be collected		(68)		(134)
Balance, end of period		$	1,726	$	3,482

Trading Account Assets Disclosure

	March 31, 2013				December 31, 2012
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(in thousands)
Fixed maturities	$	1,982	$	2,014	$	1,973	$	2,022
Equity securities		5,308		6,416		5,217		5,894
Total trading account assets	$	7,290	$	8,430	$	7,190	$	7,916

Commercial Mortgage and Other Loans

		March 31, 2013				December 31, 2012
			% of				% of
		Amount	Total			Amount	Total
Commercial mortgage and other loans by property type:		(in thousands)				(in thousands)
Office	$	62,954	14.6	%	$	59,074	13.8	%
Retail		71,178	16.5			71,546	16.7
Apartments/Multi-Family		118,732	27.5			120,066	28.0
Industrial		113,894	26.4			114,619	26.7
Hospitality		4,613	1.1			4,621	1.1
Other		10,727	2.5			9,206	2.0
Total commercial mortgage loans		382,098	88.5			379,132	88.3
Agricultural property loans		49,517	11.5			50,026	11.7
Total commercial and agricultural mortgage loans by property type		431,615	100.0	%		429,158	100.0	%
Valuation allowance		(2,139)				(2,177)
Total net commercial and agricultural mortgage loans by property type		429,476				426,981
Other Loans
Uncollateralized loans		2,740				-
Total other loans		2,740				-
Valuation Allowance		-				-
Total net other loans		2,740				-
Total commercial mortgage and other loans	$	432,216			$	426,981

Allowance for Losses

	March 31, 2013		December 31, 2012
	(in thousands)
Allowance for losses, beginning of year	$	2,177	$	1,501
Addition to / (release of) allowance for losses		(38)		676
Total ending balance (1)	$	2,139	$	2,177

(1) Agricultural loans represent $0.2million of the ending allowance at bothMarch 31, 2013 and December 31, 2012.

Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans

	March 31, 2013		December 31, 2012
	Total Loans
	(in thousands)
Allowance for Credit Losses:
Ending balance: individually evaluated for impairment (1)	$	-	$	-
Ending balance: collectively evaluated for impairment (2)		2,139		2,177
Total ending balance	$	2,139	$	2,177
Recorded Investment (3):
Ending balance gross of reserves: individually evaluated for impairment (1)	$	-	$	-
Ending balance gross of reserves: collectively evaluated for impairment (2)		434,355		429,158
Total ending balance, gross of reserves	$	434,355	$	429,158

• There were no agricultural or uncollateralized loans individually evaluated for impairments at March 31, 2013 and December 31, 2012.
• Agricultural loans collectively evaluated for impairment had a recorded investment of $50 million at both March 31, 2013and December 31, 2012, and a related allowance of $0.2 million for both periods. Uncollateralized loans collectively evaluated for impairment had a recorded investment of $3 million at March 31, 2013and $0 million atDecember 31, 2012, respectively, and no related allowance for both periods.
• Recorded investment reflects the balance sheet carrying value gross of related allowance.

Net Investment Income

			Three Months Ended
			March 31,
			2013		2012
		(in thousands)
Fixed maturities, available-for-sale			$	53,294	$	67,621
Equity securities, available-for-sale				-		-
Trading account assets				32		444
Commercial mortgage and other loans				6,128		6,822
Policy loans				114		131
Short-term investments and cash equivalents				82		200
Other long-term investments				691		738
Gross investment income				60,341		75,956
Less investment expenses				(1,801)		(2,063)
	Net investment income		$	58,540	$	73,893

Realized Gain (Loss) on Investments

		Three Months Ended
		March 31,
		2013		2012
		(in thousands)
Fixed maturities		$	2,712	$	7,068
Equity securities			1		-
Commercial mortgage and other loans			38		(556)
Derivatives			(40,826)		(42,595)
Other			(21)		-
	Realized investment gains (losses), net	$	(38,096)	$	(36,083)

Net Unrealized Investment Gain (Loss) AOCI Rollforward

				Deferred Policy				Accumulated Other
				Acquisition Costs,				Comprehensive
				Deferred Sales				Income (Loss) Related
		Net Unrealized		Inducements		Deferred		To Net Unrealized
		Gains (Losses) on		and Valuation of		Income Tax		Investment
		Investments		Business Acquired		(Liability) Benefit		Gains (Losses)
		(in thousands)
Balance, December 31, 2012		$	545	$	(214)	$	(100)	$	231
Net investment (losses) gains on investments arising during
	the period		608		-		(213)		395
Reclassification adjustment for gains (losses) included in
	net income		(788)		-		276		(512)
Impact of net unrealized investment (losses) gains on
	deferred policy acquisition costs, deferred sales inducements and
	valuation of business acquired		-		85		(30)		55
Balance, March 31, 2013		$	365	$	(129)	$	(67)	$	169

All Other Net Unrealized Investment Gain (Loss) AOCI Rollforward

				Deferred Policy						Accumulated Other
				Acquisition Costs,						Comprehensive
				Deferred Sales			Policy	Deferred		Income (Loss) Related
		Net Unrealized		Inducements			Holders'	Income Tax		To Net Unrealized
		Gains/(Losses) on		and Valuation of			Account	(Liability)		Investment
		Investments (1)		Business Acquired			Balances	Benefit		Gains (Losses)
		(in thousands)
Balance, December 31, 2012		$	376,777	$	(147,089)	$	(2,164)	$	(80,468)	$	147,056
Net investment gains (losses) on investments arising during
	the period		(46,049)		-		-		16,118		(29,931)
Reclassification adjustment for (losses) gains included in
	net income		(1,925)		-		-		674		(1,251)
Impact of net unrealized investment (losses) gains on
	deferred policy acquisition costs, deferred sales inducements
	and valuation of business acquired		-		31,896		-		(11,163)		20,733
Impact of net unrealized investment (gains) losses on
	policyholders' account balances		-		-		2,164		(770)		1,394
Balance, March 31, 2013		$	328,803	$	(115,193)	$	-	$	(75,609)	$	138,001

• Includes cash flow hedges. See Note 5 for additional discussion of our cash flow hedges.

Unrealized Gains and (Losses) on Investments

	March 31, 2013		December 31, 2012
	(in thousands)
Fixed maturity securities on which an OTTI loss has been recognized	$	365	$	545
Fixed maturity securities, available-for-sale - all other		326,121		375,409
Equity securities, available-for-sale		4		4
Affiliated notes		4,069		4,386
Derivatives designated as cash flow hedges (1)		(1,322)		(3,068)
Other investments		(69)		46
Unrealized gains (losses) on investments and derivatives	$	329,168	$	377,322
(1) See Note 5 for more information on cash flow hedges.

Duration Of Gross Unrealized Losses On Fixed Maturity Securities Disclosures

			March 31, 2013
			Less than twelve months				Twelve months or more				Total
			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
			(in thousands)
Fixed maturities, available-for-sale
Obligations of U.S. States and their
	political subdivisions		$	7,111	$	315	$	-	$	-	$	7,111	$	315
Corporate securities				76,285		1,077		11,881		200		88,166		1,277
Commercial mortgage-backed securities				27,901		314		407		1		28,308		315
Asset-backed securities				387		-		80		14		467		14
		Total	$	111,684	$	1,706	$	12,368	$	215	$	124,052	$	1,921
Equity securities, available-for-sale			$	-	$	-	$	-	$	-	$	-	$	-

			December 31, 2012
			Less than twelve months				Twelve months or more				Total
			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
			(in thousands)
Fixed maturities, available-for-sale
Obligations of U.S. States and their political
	subdivisions		$	7,090	$	350	$	-	$	-	$	7,090	$	350
Corporate securities				35,248		897		14,867		330		50,115		1,227
Commercial mortgage-backed securities				3,326		10		-		-		3,326		10
Asset-backed securities				13,817		42		2,994		290		16,811		332
		Total	$	59,481	$	1,299	$	17,861	$	620	$	77,342	$	1,919
Equity securities, available-for-sale			$	-	$	-	$	-	$	-	$	-	$	-

Reclassifications Out Of Accumulated Other Comprehensive Income

Reclassifications out of Accumulated Other Comprehensive Income (Loss) ("AOCI")
		Three Months Ended
		March 31, 2013
		(in thousands)
Amounts reclassified from AOCI (1)(2):
Net unrealized investment gains (losses):
Cash flow hedges - Currency/Interest rate (3)	$	(29)
Net unrealized investment gains (losses) on available-for-sale securities		2,742
Total net unrealized investment gains (losses) (4)		2,713
Total reclassifications for the period	$	2,713

• All amounts are shown before tax.
• Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.
• See Note 5for additional information on cash flow hedges.
• See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits and policyholders' dividends.

Accumulated Other Comprehensive Income Loss Table

	Accumulated Other Comprehensive Income (Loss)
		Foreign Currency Translation Adjustment		Net Unrealized Investment Gains (Losses) (1)		Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2012	$	7	$	147,280	$	147,287
Change in other comprehensive income
before reclassifications		(15)		(11,298)		(11,313)
Amounts reclassified from AOCI		-		(2,713)		(2,713)
Income tax benefit (expense)		5		4,904		4,909
Balance, March 31, 2013	$	(3)	$	138,173	$	138,170
	Accumulated Other Comprehensive Income (Loss)
		Foreign Currency Translation Adjustment		Net Unrealized Investment Gains (Losses) (1)		Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2011	$	-	$	160,712	$	160,712
Change in component during period (2)		2		(13,564)		(13,562)
Balance, March 31, 2012	$	2	$	147,148	$	147,150

• Includes cash flow hedges of($1) million and ($3) million as of March 31, 2013 and December 31, 2012, respectively, and ($2) million and ($1) million as of March 31, 2012 and December 31, 2011, respectively.
• All amounts are shown net of taxes.