The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) as of the dates indicated:

		December 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	$	6,382	$	36	$	34	$	6,384	$	-
Obligations of U.S. states and their political
	subdivisions		67,225		2,911		1,570		68,566		-
Foreign government bonds			25,437		5,717		-		31,154		-
Public utilities			229,807		17,048		3,190		243,665		-
Redeemable preferred stock			-		-		-		-		-
Corporate securities			2,029,720		158,360		9,103		2,178,977		-
Asset-backed securities (1)			182,888		6,513		1,509		187,892		(1,351)
Commercial mortgage-backed securities			384,764		11,387		5,518		390,633		-
Residential mortgage-backed securities (2)			152,779		5,138		972		156,945		(40)
Total fixed maturities, available-for-sale		$	3,079,002	$	207,110	$	21,896	$	3,264,216	$	(1,391)

Equity securities, available-for-sale
Common Stocks:
	Public utilities	$	192	$	-	$	-	$	192
	Mutual funds		14		2		-		16
Total equity securities, available-for-sale		$	206	$	2	$	-	$	208

		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:
	Public utilities	$	-	$	-	$	-	$	-
	Mutual funds (4)		18		4		-		22
Total equity securities, available-for-sale		$	18	$	4	$	-	$	22

The amortized cost and fair value of fixed maturities by contractual maturities at December 31, 2013, are as follows:

		Available-for-Sale
		Amortized		Fair
		Cost		Value

		(in thousands)
Due in one year or less		$	432,502	$	438,120
Due after one year through five years			864,299		936,644
Due after five years through ten years			642,273		696,655
Due after ten years			419,497		457,327
Asset-backed securities			182,888		187,892
Commercial mortgage-backed securities			384,764		390,633
Residential mortgage-backed securities			152,779		156,945
	Total	$	3,079,002	$	3,264,216

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed, and residential mortgage-backed securities are shown separately in the table above, as they are not due at a single maturity date.

The following table depicts the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities:

			2013		2012		2011

			(in thousands)
Fixed maturities, available-for-sale
	Proceeds from sales		$	314,415	$	504,001	$	1,121,792
	Proceeds from maturities/repayments			1,175,680		861,512		545,155
	Gross investment gains from sales, prepayments, and maturities			18,619		23,077		75,580
	Gross investment losses from sales and maturities			(9,824)		(134)		(223)
Equity securities, available-for-sale
	Proceeds from sales		$	14	$	3,201	$	-
	Gross investment gains from sales			10		703		-
Fixed maturity and equity security impairments
	Net writedowns for other-than-temporary impairment losses
		on fixed maturities recognized in earnings (1)	$	-	$	(258)	$	(962)

As discussed in Note 2, a portion of certain OTTI losses on fixed maturity securities are recognized in OCI. For these securities the net amount recognized in earnings (“credit loss impairments”) represents the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in OCI. The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts.

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

		Year Ended		Year Ended
		December 31,		December 31,
		2013		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		(1,628)		(275)
Additional credit loss impairments recognized in the current period on securities
	previously impaired		-		258
Increases due to the passage of time on previously recorded credit losses			114		197
Accretion of credit loss impairments previously recognized due to an increase in
	cash flows expected to be collected		(68)		(341)
Balance, end of period		$	1,799	$	3,381

The following table sets forth the composition of “Trading account assets” as of the dates indicated:

The net change in unrealized gains (losses) from trading account assets still held at period end, recorded within “Other income” was $0.8 million, ($0.4) million and ($4.1) million during the years ended December 31, 2013, 2012 and 2011, respectively.

The Company's commercial mortgage and other loans are comprised as follows, as of the dates indicated:

			December 31, 2013					December 31, 2012
			Amount		% of			Amount		% of
			(in thousands)		Total			(in thousands)		Total

Commercial and agricultural mortgage loans by property type:
Apartments/Multi-Family			$	125,045		31.5	%	$	120,066		28.0	%
Industrial				88,009		22.1			114,619		26.7
Retail				72,325		18.2			71,546		16.7
Office				40,976		10.3			59,074		13.8
Other				13,796		3.5			9,206		2.0
Hospitality				5,133		1.3			4,621		1.1

	Total commercial mortgage loans			345,284		86.9			379,132		88.3
Agricultural property loans				52,223		13.1			50,026		11.7
	Total commercial and agricultural mortgage loans by property
		type		397,507		100.0	%		429,158		100.0	%
Valuation allowance				(1,256)					(2,177)

	Total net commercial and agricultural mortgage loans by property
		type		396,251					426,981

Other Loans
Uncollateralized loans				2,740					-

	Total other loans			2,740					-

	Total commercial mortgage and other loans		$	398,991				$	426,981

The commercial mortgage and agricultural property loans are geographically dispersed throughout the United States with the largest concentrations in California (17%), Texas (11%), Ohio (9%), and New York (8%) at December 31, 2013.

Activity in the allowance for losses for all commercial mortgage and other loans, as of the dates indicated, is as follows:

The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans as of the dates indicated:

	December 31, 2013		December 31, 2012

	(in thousands)
Allowance for Credit Losses:
Ending balance: individually evaluated for impairment (1)	$	-	$	-
Ending balance: collectively evaluated for impairment (2)		1,256		2,177
Total ending balance	$	1,256	$	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)		400,247		429,158
Total ending balance, gross of reserves	$	400,247	$	429,158

Impaired loans include those loans for which it is probable that all amounts due will not be collected according to the contractual terms of the loan agreement. There were no impaired commercial mortgage and other loans identified in management's specific review of probable loan losses and related allowance at December 31, 2013 and 2012. There were no recorded investments in impaired loans with an allowance recorded, before the allowance for losses at both December 31, 2013 and 2012.

There was no net investment income recognized on these loans for both the years ended December 31, 2013 and 2012. See Note 2 for information regarding the Company's accounting policies for non-performing loans.

Impaired commercial mortgage and other loans with no allowance for losses are loans in which the fair value of the collateral or the net present value of the loans' expected future cash flows equals or exceeds the recorded investment. The Company had no such loans at December 31, 2013 and 2012. See Note 2 for information regarding the Company's accounting policies for non-performing loans.

As described in Note 2, loan-to-value and debt service coverage ratios are measures commonly used to assess the quality of commercial mortgage and other loans. As of December 31, 2013 and 2012, 100% of the $398 million recorded investment and 85% of the $429 million recorded investment, respectively, had a loan-to-value ratio of less than 80%. As of December 31, 2013 and 2012, 99% and 96% of the recorded investment had a debt service coverage ratio of 1.0X or greater, respectively. As of December 31, 2013 and 2012, approximately 1% or $2 million and 4% or $17 million, respectively, of the recorded investment had a loan-to-value ratio greater than 100% or debt service coverage ratio less than 1.0X, reflecting loans where the mortgage amount exceeds the collateral value or where current debt payments are greater than income from property operations; none of which related to agricultural or uncollateralized loans.

As of December 31, 2013 and 2012, all commercial mortgage and other loans were in current status. The Company defines current in its aging of past due commercial mortgage and agricultural loans as less than 30 days past due.

There were no commercial mortgage and other loans in nonaccrual status as of December 31, 2013 and 2012. Nonaccrual loans are those on which the accrual of interest has been suspended after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability and loans for which a loan-specific reserve has been established. See Note 2 for further discussion regarding non-accrual status loans.

During 2013 and 2012, the Company sold commercial mortgage loans to an affiliated company. See Note 13 for further discussion regarding related party transactions.

The Company's commercial mortgage and other loans may occasionally be involved in a troubled debt restructuring. As of both December 31, 2013 and 2012, the Company had no significant commitments to fund to borrowers that have been involved in troubled debt restructuring. For the years ended December 31, 2013 and 2012, there was an adjusted pre-modification outstanding recorded investments of $0 million and $5 million, respectively, and post-modification outstanding recorded investment of $0 million and $5 million, respectively, related to commercial mortgage loans. No payment defaults on commercial mortgage and other loans were modified as a troubled debt restructuring within the 12 months preceding each respective period. See Note 2 for additional information related to the accounting for troubled debt restructurings.

The following table sets forth the composition of “Other long-term investments” at December 31 for the years indicated:

Net investment income for the years ended December 31, was from the following sources:

		2013		2012		2011

		(in thousands)
Fixed maturities, available-for-sale		$	191,043	$	246,479	$	282,108
Equity securities, available-for-sale			-		7		278
Trading account assets			342		923		2,023
Commercial mortgage and other loans			28,463		28,449		28,044
Policy loans			675		845		902
Short-term investments			323		620		724
Other long-term investments			3,601		8,302		1,016
	Gross investment income		224,447		285,625		315,095
Less: investment expenses			(6,564)		(7,974)		(9,085)
	Net investment income	$	217,883	$	277,651	$	306,010

There were no non-income producing assets included in fixed maturities as of December 31, 2013. Non-income producing assets represent investments that have not produced income for the preceding twelve months.

Realized investment gains (losses), net, for the years ended December 31, were from the following sources:

The balance of and changes in each component of “Accumulated other comprehensive income (loss)” for the years ended December 31, are as follows:

		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, 2010		$	-	$	190,871	$	190,871
Change in component during period (2)			-		(30,160)		(30,160)
Balance, December 31, 2011		$	-	$	160,711	$	160,711
Change in component during period (2)			7		(13,431)		(13,424)
Balance, December 31, 2012		$	7	$	147,280	$	147,287
Change in other comprehensive income
	before reclassifications		5		(108,769)		(108,764)
Amounts reclassified from AOCI			-		(8,805)		(8,805)
Income tax benefit (expense)			(2)		41,151		41,149
Balance, December 31, 2013		$	10	$	70,857	$	70,867

Reclassifications out of Accumulated Other Comprehensive Income (Loss)


				Year Ended		Year Ended		Year Ended
				December 31, 2013		December 31, 2012		December 31, 2011

				(in thousands)
Amounts reclassified from AOCI (1)(2):
Net unrealized investment gains (losses):
	Cash flow hedges - Currency/Interest rate (3)			$	(95)	$	(101)	$	(85)
	Net unrealized investment gains (losses) on available-for-sale securities				8,900		23,488		76,476
		Total net unrealized investment gains (losses) (4)			8,805		23,387		76,391

			Total reclassifications for the period	$	8,805	$	23,387	$	76,391

Net unrealized investment gains and losses on securities classified as available-for-sale and certain other long-term investments and other assets are included in the Company's Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from “Other comprehensive income (loss)” those items that are included as part of “Net income” for a period that had been part of “Other comprehensive income (loss)” in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains and losses, are as follows:

Net Unrealized Investment Gains and Losses on Fixed Maturity Securities on which an OTTI loss has been recognized

		Net Unrealized Gains (Losses) on Investments		Deferred Policy Acquisition Costs and Other Costs		Future Policy Benefits		Deferred Income Tax (Liability) Benefit		Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses)

		(in thousands)
Balance, December 31, 2010		$	(6,560)	$	2,852	$	-	$	1,313	$	(2,395)
Net investment gains (losses) on investments
	arising during the period		(1,482)		-		-		519		(963)
Reclassification adjustment for gains (losses)
	included in net income		6,302		-		-		(2,206)		4,096
Impact of net unrealized investment (losses) gains on
	deferred policy acquisition costs, deferred sales
	inducements and valuation of business acquired		-		(2,160)		-		756		(1,404)
Impact of net unrealized investment (gains) losses on
	future policy benefits		-		-		-		-		-
Balance, December 31, 2011		$	(1,740)	$	692	$	-	$	382	$	(666)
Net investment gains (losses) on investments
	arising during the period		3,067		-		-		(1,073)		1,994
Reclassification adjustment for gains (losses)
	included in net income		(782)		-		-		274		(508)
Impact of net unrealized investment (losses) gains on
	deferred policy acquisition costs, deferred sales
	inducements and valuation of business acquired		-		(906)		-		317		(589)
Impact of net unrealized investment (gains) losses on
	future policy benefits		-		-		-		-		-
Balance, December 31, 2012		$	545	$	(214)	$	-	$	(100)	$	231
Net investment gains (losses) on investments
	arising during the period		483		-		-		(168)		315
Reclassification adjustment for gains (losses)
	included in net income		(705)		-		-		247		(458)
Impact of net unrealized investment (losses) gains on
	deferred policy acquisition costs, deferred sales
	inducements and valuation of business acquired		-		98		-		(35)		63
Impact of net unrealized investment (gains) losses on
	future policy benefits		-		-		(14)		5		(9)
Balance, December 31, 2013		$	323	$	(116)	$	(14)	$	(51)	$	142

										Accumulated Other
										Comprehensive
								Deferred		Income (Loss) Related
		Net Unrealized		Deferred Policy		Future		Income Tax		To Net Unrealized
		Gains/(Losses) on		Acquisition Costs		Policy		(Liability)		Investment
		Investments (1)		and Other Costs		Benefits		Benefit		Gains (Losses)

		(in thousands)
Balance, December 31, 2010		$	504,664	$	(206,046)	$	-	$	(105,352)	$	193,266
Net investment gains (losses) on investments
	arising during the period		19,706		-		-		(6,897)		12,809
Reclassification adjustment for (losses) gains
	included in net income		(82,693)		-		-		28,947		(53,746)
Impact of net unrealized investment gains
	(losses) on deferred policy acquisition
	costs, deferred sales inducements and
	valuation of business acquired		-		13,927		-		(4,879)		9,048
Impact of net unrealized investment (gains)
	losses on future policy benefits		-		-		-		-		-
Balance, December 31, 2011		$	441,677	$	(192,119)	$	-	$	(88,181)	$	161,377
Net investment gains (losses) on investments
	arising during the period		(42,295)		-		-		14,804		(27,491)
Reclassification adjustment for (losses) gains
	included in net income		(22,605)		-		-		7,912		(14,693)
Impact of net unrealized investment gains
	(losses) on deferred policy acquisition
	costs, deferred sales inducements and
	valuation of business acquired		-		45,030		-		(15,760)		29,270
Impact of net unrealized investment (gains)
	losses on future policy benefits		-		-		(2,164)		757		(1,407)
Balance, December 31, 2012		$	376,777	$	(147,089)	$	(2,164)	$	(80,468)	$	147,056
Net investment gains (losses) on investments
	arising during the period		(183,950)		-		-		64,383		(119,567)
Reclassification adjustment for (losses) gains
	included in net income		(8,100)		-		-		2,835		(5,265)
Impact of net unrealized investment gains
	(losses) on deferred policy acquisition
	costs, deferred sales inducements and
	valuation of business acquired		-		80,637		-		(28,222)		52,415
Impact of net unrealized investment (gains)
	losses on future policy benefits		-		-		(6,023)		2,109		(3,914)
Balance, December 31, 2013		$	184,727	$	(66,452)	$	(8,187)	$	(39,363)	$	70,725

The table below presents net unrealized gains (losses) on investments by asset class at December 31:

	2013		2012		2011

	(in thousands)
Fixed maturity securities on which an OTTI loss has been recognized	$	323	$	545	$	(1,740)
Fixed maturity securities, available-for-sale - all other		184,891		375,409		436,812
Equity securities, available-for-sale		2		4		561
Affiliated notes		3,113		4,386		5,263
Derivatives designated as cash flow hedges (1)		(3,653)		(3,068)		(962)
Other investments		374		46		3
Net Unrealized gains (losses) on investments	$	185,050	$	377,322	$	439,937

Duration of Gross Unrealized Loss Positions for Fixed Maturities and Equity Securities

The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, as of the dates indicated:

			December 31, 2013
			Less than twelve months				Twelve months or more				Total

			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses

			(in thousands)
Fixed maturities, available-for-sale
U.S. Treasury securities and obligations of
	U.S. government authorities and agencies		$	3,347	$	34	$	-	$	-	$	3,347	$	34
Obligations of U.S. States and their
	political subdivisions			5,420		588		6,402		982		11,822		1,570
Corporate securities				351,306		11,923		2,704		370		354,010		12,293
Asset-backed securities				97,575		1,509		-		-		97,575		1,509
Commercial mortgage-backed securities				86,132		5,249		2,941		269		89,073		5,518
Residential mortgage-backed securities				100,150		972		-		-		100,150		972
		Total	$	643,930	$	20,275	$	12,047	$	1,621	$	655,977	$	21,896

Equity securities, available-for-sale			$	-	$	-	$	-	$	-	$	-	$	-

			December 31, 2012
			Less than twelve months				Twelve months or more				Total

			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses

			(in thousands)
Fixed maturities, available-for-sale
U.S. Treasury securities and obligations of
	U.S. government authorities and agencies		$	-	$	-	$	-	$	-	$	-	$	-
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
Asset-backed securities				13,817		42		2,994		290		16,811		332
Commercial mortgage-backed securities				3,326		10		-		-		3,326		10
Residential mortgage-backed securities				-		-		-		-		-		-
		Total	$	59,481	$	1,299	$	17,861	$	620	$	77,342	$	1,919

Equity securities, available-for-sale			$	-	$	-	$	-	$	-	$	-	$	-

The gross unrealized losses at December 31, 2013 and 2012, are composed of $20.4 million and $1.6 million, respectively, related to high or highest quality securities based on NAIC or equivalent rating and $1.5 million and $0.3 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. At December 31, 2013, $0.2 million of gross unrealized losses represented declines in value of greater than 20%, all of which had been in that position for less than six months, as compared to December 31, 2012, when none of the gross unrealized losses represented declines in value of greater than 20%. At December 31, 2013, $1.6 million of gross unrealized losses of twelve months or more were concentrated in U.S. obligations and the consumer non-cyclical sector of the Company's corporate securities. At December 31, 2012, $0.6 million of gross unrealized losses of twelve months or more were concentrated in asset-backed securities and the service and manufacturing sectors of the Company's corporate securities.

In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for other-than-temporary impairments for these securities was not warranted at December 31, 2013 or 2012. These conclusions are based on a detailed analysis of the underlying credit and cash flows on each security. The gross unrealized losses are primarily attributable to credit spread widening and increased liquidity discounts. At December 31, 2013, the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the securities before the anticipated recovery of its remaining amortized cost basis.

The Company pledges as collateral investment securities it owns to unaffiliated parties through certain transactions, including securities lending, securities sold under agreements to repurchase, collateralized borrowings and postings of collateral with derivative counterparties. At December 31, the carrying value of investments pledged to third parties as reported in the Statements of Financial Position included the following:

As of December 31, 2013 and 2012, the carrying amount of the associated liabilities supported by the pledged collateral was $48 million and $39 million, respectively, which was “Cash collateral for loaned securities”.

Fixed maturities of $8 million and $5 million at December 31, 2013 and 2012, respectively, were on deposit with governmental authorities or trustees as required by certain insurance laws.