Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2012

Schedule Of Derivative Instruments In Statement Of Financial Position Fair Value

				March 31, 2012						December 31, 2011
					Notional	Carrying Value/Fair Value					Notional	Carrying Value/Fair Value
					Amount		Assets		Liabilities		Amount		Assets		Liabilities
Derivatives not designated as
	hedging instruments:
	Interest rate swaps⁽¹⁾			$	2,708,940	$	117,624	$	20,454	$	2,748,317	$	184,842	$	18,702
	Financial futures⁽¹⁾				274,101		--		--		277,814		--		--
	Foreign currency forwards⁽¹⁾				24,400		2,482		--		24,400		4,560		--
	Consumer Price index (“CPI”) swaps⁽¹⁾				102,425		1,230		--		101,069		766		--
	Credit default swaps⁽¹⁾				649,500		3,245		3,707		649,500		1,313		10,949
	Equity options⁽¹⁾				669,188		69,426		--		510,073		90,106		--
	Embedded derivatives in:
		Modified coinsurance or funds
			withheld arrangements⁽²⁾		--		--		370,884		--		--		361,456
		Indexed annuity products⁽³⁾			--		3,514		772,938		--		4,945		751,523
		Variable annuity products⁽³⁾			--		--		130,344		--		--		276,718
	Total non-hedging derivatives				4,428,554		197,521		1,298,327		4,311,173		286,532		1,419,348

Derivatives designated as
	hedging instruments:
	Interest rate swaps⁽¹⁾				57,005		39		924		56,250		133		960
	Foreign currency swaps⁽¹⁾				621,578		282		33,143		621,578		286		23,996
	Total hedging derivatives				678,583		321		34,067		677,828		419		24,956
Total derivatives				$	5,107,137	$	197,842	$	1,332,394	$	4,989,001	$	286,951	$	1,444,304

(1)		Carried on the Company’s condensed consolidated balance sheets in other invested assets or other liabilities, at fair value.
(2)		Embedded liability is included on the condensed consolidated balance sheets with the host contract in funds withheld at interest, at fair value.
(3)		Embedded liability is included on the condensed consolidated balance sheets with the host contract in interest-sensitive contract liabilities, at fair value. Embedded asset is included on the condensed consolidated balance sheets in reinsurance ceded receivables.

Net Derivatives Gains Losses Recognized On Fair Value Derivatives And Related Hedged Items

Type of Fair Value Hedge	Hedged Item		Gains (Losses) Recognized for Derivatives		Gains (Losses) Recognized for Hedged Items		Ineffectiveness Recognized in Investment Related Gains (Losses)

For the three months ended March 31, 2011:
Interest rate swaps	Fixed rate maturities	$	223	$	(97)	$	126

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]

	2012
Accumulated other comprehensive income (loss), balance beginning of year	$	(828)
Gains (losses) deferred in other comprehensive income (loss) on the effective portion of cash flow hedges		323
Amounts reclassified to investment related gains (losses), net		--
Amounts reclassified to investment income		(357)
Accumulated other comprehensive income (loss), balance end of period	$	(862)

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]

Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) Deferred in AOCI on Derivatives		Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)				Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives
	(Effective Portion)		(Effective Portion)				(Ineffective Portion and Amounts Excluded from Effectiveness Testing)
			Investment Related Gains (Losses)		Investment Income		Investment Related Gains (Losses)		Investment Income
Interest rate swaps	$	323	$	--	$	357	$	(24)	$	--

Derivatives Hedging Instruments In Net Investment Hedging Relationships

		Derivative Gains (Losses) Deferred in AOCI
		For the three months ended March 31,
Type of NIFO Hedge ^{(1) (2)}		2012		2011

Foreign currency swaps		$	(10,645)	$	(15,104)

(1)	There were no sales or substantial liquidations of net investments in foreign operations that would have required the reclassification of gains or losses from accumulated other comprehensive income (loss) into investment income during the periods presented.
(2)	There was no ineffectiveness recognized for the Company's hedges of net investments in foreign operations.

Changes In Estimated Fair Value Related To Embedded Derivatives

	Three months ended
	March 31,
	2012		2011
Embedded derivatives in modco or funds withheld arrangements included in investment related gains	$	(9,428)	$	90,535
After the associated amortization of DAC and taxes, the related amounts included in net income		1,933		19,183
Embedded derivatives in variable annuity contracts included in investment related gains		146,375		32,654
After the associated amortization of DAC and taxes, the related amounts included in net income		15,082		8,801
Amounts related to embedded derivatives in equity-indexed annuities included in benefits and expenses		(19,739)		(41,271)
After the associated amortization of DAC and taxes, the related amounts included in net income		13,870		(36,650)

Non-hedging Derivatives

A summary of the effect of non-hedging derivatives, including embedded derivatives, on the Company’s income statement for the three months ended March 31, 2012 and 2011 is as follows (dollars in thousands):

				Gain (Loss) for the Three Months Ended
				March 31,
Type of Non-hedging Derivative		Income Statement Location of Gain (Loss)		2012		2011
Interest rate swaps		Investment related gains (losses), net		$	(47,352)	$	(10,730)
Financial futures		Investment related gains (losses), net			(17,409)		(11,423)
Foreign currency forwards		Investment related gains (losses), net			(1,608)		(855)
CPI swaps		Investment related gains (losses), net			(802)		811
Credit default swaps		Investment related gains (losses), net			11,813		892
Equity options		Investment related gains (losses), net			(37,983)		(4,568)
Embedded derivatives in:
	Modco or funds withheld arrangements	Investment related gains (losses), net			(9,428)		90,535
	Indexed annuity products	Policy acquisition costs and other insurance
			expenses		(998)		8,094
	Indexed annuity products	Interest credited			(18,741)		(49,365)
	Variable annuity products	Investment related gains (losses), net			146,375		32,654
Total non-hedging derivatives				$	23,867	$	56,045

Credit Risk

			March 31, 2012		December 31, 2011
Estimated fair value of derivatives in net asset position			$	136,100	$	227,399
	Securities pledged to counterparties as collateral⁽¹⁾			35,623		27,052
	Cash pledged from counterparties as collateral⁽²⁾			(140,915)		(241,480)
	Securities pledged from counterparties as collateral⁽³⁾			(30,146)		(997)
Net credit exposure			$	662	$	11,974

Margin account related to exchange-traded futures⁽²⁾			$	15,742	$	18,153

(1)		Consists of U.S. Treasury securities, included in other invested assets.
(2)		Included in cash and cash equivalents.
(3)		Consists of U.S. Treasury securities.

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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