Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Schedule Of Derivative Instruments In Statement Of Financial Position Fair Value

				September 30, 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⁾			$	2,236,718	$	306,774	$	174,741	$	2,748,317	$	184,842	$	18,702
	Financial futures⁽¹⁾				204,424		--		--		277,814		--		--
	Foreign currency forwards⁽¹⁾				44,400		4,052		36		24,400		4,560		--
	Consumer price index swaps⁽¹⁾				102,742		817		--		101,069		766		--
	Credit default swaps⁽¹⁾				640,500		1,308		3,770		649,500		1,313		10,949
	Equity options⁽¹⁾				696,776		73,659		--		510,073		90,106		--
	Synthetic guaranteed investment contracts
		("GICs")⁽¹⁾			1,913,202		--		--		--		--		--
	Embedded derivatives in:
		Modified coinsurance or funds
			withheld arrangements⁽²⁾		--		--		320,501		--		--		361,456
		Indexed annuity products⁽³⁾			--		4,192		751,112		--		4,945		751,523
		Variable annuity products⁽³⁾			--		--		202,693		--		--		276,718
	Total non-hedging derivatives				5,838,762		390,802		1,452,853		4,311,173		286,532		1,419,348

Derivatives designated as
	hedging instruments:
	Interest rate swaps⁽¹⁾				57,181		3,901		--		56,250		133		960
	Foreign currency swaps⁽¹⁾				629,512		--		32,757		621,578		286		23,996
	Total hedging derivatives				686,693		3,901		32,757		677,828		419		24,956
Total derivatives				$	6,525,455	$	394,703	$	1,485,610	$	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 September 30, 2011:
Interest rate swaps	Fixed rate fixed maturities	$	(655)	$	913	$	258

For the nine months ended September 30, 2011:
Interest rate swaps	Fixed rate fixed maturities	$	(921)	$	1,509	$	588

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

	Three months ended		Nine months ended
	September 30, 2012		September 30, 2012
Accumulated other comprehensive income (loss), balance beginning of period	$	(719)	$	(828)
Gains (losses) deferred in other comprehensive income (loss) on the effective portion of cash flow hedges		(2,831)		(2,044)
Amounts reclassified to investment related gains (losses), net		--		--
Amounts reclassified to investment income		(351)		(1,029)
Accumulated other comprehensive income (loss), balance end of period	$	(3,901)	$	(3,901)

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
For the three months ended September 30, 2012:
Interest rate swaps	$	(2,831)	$	--	$	351	$	(3)	$	--

For the nine months ended September 30, 2012:
Interest rate swaps	$	(2,044)	$	--	$	1,029	$	--	$	--

Derivatives Hedging Instruments In Net Investment Hedging Relationships

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

Foreign currency swaps		$	(19,454)	$	50,974	$	(23,457)	$	25,954

(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				Nine months ended
		September 30,				September 30,
		2012		2011		2012		2011
Embedded derivatives in modco or funds withheld arrangements included
	in investment related gains	$	54,836	$	(102,574)	$	40,955	$	(1,514)
After the associated amortization of DAC and taxes, the related amounts included in net income			11,228		(22,403)		10,563		568

Embedded derivatives in variable annuity contracts included in investment related gains			2,579		(260,239)		74,025		(253,445)
After the associated amortization of DAC and taxes, the related amounts included in net income			1,588		(25,263)		494		(23,876)
Amounts related to embedded derivatives in equity-indexed annuities included
	in benefits and expenses		(33,821)		14,360		(26,422)		(58,987)
After the associated amortization of DAC and taxes, the related amounts included in net income			(22,529)		23,002		6,465		(26,840)

Derivative Instruments Gain Loss By Income Statement Location

Non-hedging Derivatives

A summary of the effect of non-hedging derivatives, including embedded derivatives, on the Company’s income statement for the three and nine months ended September 30, 2012 and 2011 is as follows (dollars in thousands):

					Gain (Loss) for the Three Months Ended
					September 30,
Type of Non-hedging Derivative			Income Statement Location of Gain (Loss)		2012		2011
Interest rate swaps			Investment related gains (losses), net		$	(1,437)	$	142,907
Financial futures			Investment related gains (losses), net			(3,977)		36,217
Foreign currency forwards			Investment related gains (losses), net			519		1,374
CPI swaps			Investment related gains (losses), net			422		(219)
Credit default swaps			Investment related gains (losses), net			7,817		(10,018)
Equity options			Investment related gains (losses), net			(23,916)		30,530
Embedded derivatives in:
	Modified coinsurance or funds withheld
		arrangements	Investment related gains (losses), net			54,836		(102,574)
	Indexed annuity products		Policy acquisition costs and other insurance
				expenses		(224)		(3,172)
	Indexed annuity products		Interest credited			(33,597)		17,531
	Variable annuity products		Investment related gains (losses), net			2,579		(260,239)
Total non-hedging derivatives					$	3,022	$	(147,663)

					Gain (Loss) for the Nine Months Ended
					September 30,
Type of Non-hedging Derivative			Income Statement Location of Gain (Loss)		2012		2011
Interest rate swaps			Investment related gains (losses), net		$	24,553	$	157,520
Financial futures			Investment related gains (losses), net			(10,312)		21,920
Foreign currency forwards			Investment related gains (losses), net			(574)		1,114
CPI swaps			Investment related gains (losses), net			(1,811)		1,096
Credit default swaps			Investment related gains (losses), net			14,835		(8,138)
Equity options			Investment related gains (losses), net			(58,532)		29,880
Embedded derivatives in:
	Modified coinsurance or funds withheld
		arrangements	Investment related gains (losses), net			40,955		(1,514)
	Indexed annuity products		Policy acquisition costs and other insurance
				expenses		(363)		8,947
	Indexed annuity products		Interest credited			(26,059)		(67,935)
	Variable annuity products		Investment related gains (losses), net			74,025		(253,445)
Total non-hedging derivatives					$	56,717	$	(110,555)

Credit Risk

			September 30, 2012		December 31, 2011
Estimated fair value of derivatives in net asset position			$	179,206	$	227,399
	Securities pledged to counterparties as collateral⁽¹⁾			35,093		27,052
	Cash pledged from counterparties as collateral⁽²⁾			(178,584)		(241,480)
	Securities pledged from counterparties as collateral⁽³⁾			(25,049)		(997)
Net credit exposure			$	10,666	$	11,974

Margin account related to exchange-traded futures⁽⁴⁾			$	5,376	$	18,153

(1)		Consists of U.S. Treasury securities, included in other invested assets.
(2)		Included in cash and cash equivalents, with obligation to return cash collateral recorded in other liabilities.
(3)		Consists of U.S. Treasury securities.
(4)		Included in cash and cash equivalents.

- 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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