~~13.Financing Activities~~

In June 2016, RGA issued 3.95% Senior Notes due September 15, 2026 with a face amount of $400.0 million and 5.75% Fixed-To-Floating Rate Subordinated Debentures due June 15, 2056 with a face amount of $400.0 million. These securities have been registered with the Securities and Exchange Commission. The net proceeds from these offerings were approximately $791.0 million and will be used in part to repay upon maturity the Company’s $300.0 million 5.625% Senior Notes that mature in March 2017. The remainder will be used for general corporate purposes. Capitalized issue costs were approximately $9.0 million.


~~14.~~12.	New Accounting Standards

Changes to the general accounting principles are established by the Financial Accounting Standards Board ~~("FASB"~~(“FASB”) in the form of accounting standards updates to the FASB Accounting Standards Codification™. Accounting standards updates not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s condensed consolidated financial statements.

Adoption of New Accounting Standards

~~Transfers and Servicing~~Stock Compensation

In ~~June 2014,~~March 2016, the FASB ~~amended~~updated the general accounting ~~principles~~principal for ~~Transfers~~Stock Compensation which changed how companies account for certain aspects of share-based payment awards to employees. The updated guidance requires excess tax benefits and ~~Servicing~~ ~~as it relates to~~deficiencies from share-based payment awards be recorded in income tax expense in the income statement. Previously, excess tax benefits and deficiencies were recognized in shareholders’ equity or deferred taxes on the balance sheet depending on the tax situation of the Company. In addition, the updated guidance also changes the accounting for ~~repurchase-to-maturity transactions, repurchase financings,~~forfeitures and ~~disclosures. This amendment requires entities to account for repurchase-to-maturity transactions~~statutory tax withholding requirements, as ~~secured borrowings, eliminates guidance on linked repurchase financing transactions, and expands disclosure requirements related to certain transfers of financial assets that are accounted for~~well as sales and certain transfers accounted for as secured borrowings. These amendments are effective for annual years, and interim periods within those years, beginning after December 15, 2014. Certain interim period disclosures for repurchase agreements and securities lending transactions were not required until the second quarter of 2015. The adoption of this amendment did not have an impact on the Company's condensed consolidated financial statements other than the addition of the required disclosures. The Company adopted these amendments and the required disclosures are provided in Note 4 "Investments."

~~Business Combinations~~

~~In September 2015, the FASB amended the general accounting principles for~~ ~~Business Combinations~~ as it relates to measurement period adjustments. This amendment requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, including the cumulative effect of the change in provisional amount as if the accounting had been completed at the acquisition date. The adjustments related to previous reporting periods since the acquisition date must be disclosed by income statement line item either on the face of the income statement or in the notes. The Company adopted this amendment during the three months ended September 30, 2015. Accordingly, the Company applied the amendments in this update to the measurement period adjustments made during the three months ended September 30, 2015 with no material effect on previous-period or current-period earnings.

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~~Debt Issuance Costs~~

~~In April 2015, the FASB issued accounting guidance,~~ ~~“Simplifying the Presentation of Debt Issuance Costs”~~ ~~which requires capitalized debt issuance costs related to a recognized debt liability be presented~~classification in the statement of ~~financial position as~~cash flows. The new standard generally requires a direct deduction from the carrying amount of that debt. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted for financial statements not yet issued. The Company elected to adopt this standardmodified retrospective transition through a cumulative-effect adjustment as of ~~December 31, 2015,~~the beginning of the period of adoption, with certain provisions requiring either a prospective or retrospective ~~application to all balance sheets presented.~~

~~Fair Value Measurement~~

In May 2015, the FASB issued amended guidance on the disclosures for investments in certain entities that calculate net asset value ("NAV") per share (or its equivalent). The amendments remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The guidance is effective for fiscal years beginning after December 15, 2015 and for interim periods within those years. Early application is permitted.transition. The Company adopted the new guidance on January 1, 2017. Upon adoption, the Company recognized excess tax benefits of approximately $17.7 million in deferred tax assets that were previously not recognized in a cumulative-effect adjustment increasing retained earnings by $17.7 million. The Company also recorded a tax benefit associated with the excess tax benefits of approximately $1.9 million in the provision for income taxes for the ~~year~~three-month period ended ~~December~~March 31, ~~2015 and applied~~2017. The number of weighted average diluted shares outstanding were also adjusted to exclude excess tax benefits from the ~~guidance retrospectively. Adoption~~assumed proceeds in the diluted shares calculation resulting in an immaterial increase in the number of dilutive shares outstanding. The Company also elected to continue estimating forfeitures for purposes of recognizing share-based compensation. Other aspects of the adoption of the updated guidance did not have a material impact onto the Company’s ~~condensed consolidated~~ financial statements.

Future Adoption of New Accounting Standards

Financial ~~Services - Insurance~~

~~In May 2015, the FASB amended the general accounting principle for~~ ~~Financial Services - Insurance~~ which expanded the breadth of disclosures that an insurance entity must provide about its short-duration insurance contracts. This amendment requires insurance entities to disclose for annual reporting periods information about the liability for unpaid claims and claim adjustment expenses. The amendment also requires insurance entities to disclose information about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses, including reasons for the change and the effects on the financial statements. In addition, the amendment requires insurance entities to disclose for annual and interim reporting periods a roll-forward of the liability for unpaid claims and claim adjustment expenses. This amendment focuses only on disclosure; it does not change the accounting model for short-duration contracts. The update is effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. The new guidance should be applied retrospectively by providing comparative disclosures for each period presented, except for those requirements that apply only to the current period. The adoption of this amendment is not expected to have an impact on the Company's condensed consolidated financial statements other than the addition of the required disclosures.

~~Financial~~ Instruments

In January 2016, the FASB amended the general accounting principle for Financial Instruments,, effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. The amendment revises the accounting related to (1) the classification and measurement of investments in equity securities, (2) the presentation of certain fair value changes for financial liabilities measured at fair value, (3) certain disclosure requirements associated with the fair value of financial instruments. The new guidance should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. The Company is currently evaluating the impact of this amendment on its condensed consolidated financial statements.

In June 2016, the FASB amended the existing impairment guidance of Financial ~~Instruments~~.Instruments. The amendment adds to U.S. GAAP an impairment model, known as current expected credit loss ~~("CECL"~~(“CECL”) model that is based on expected losses rather than incurred losses. For traditional and other receivables, held-to-maturity debt securities, loans and other instruments entities will be required to use the new forward-looking ~~"expected loss"~~“expected loss” model that generally will result in earlier recognition of allowance for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses similar to what they do today, except the losses will be recognized as allowances rather than reduction to the amortized cost of the securities. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, with early adoption permitted. The guidance will be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is currently evaluating the impact of this amendment on its ~~condensed~~ consolidated financial statements.

Leases

In February 2016, the FASB issued guidance which will replace most existing lease accounting guidance. The new standard, based on the principle that entities should recognize assets and liabilities arising from leases, does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Leases are classified

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as finance or operating. The new ~~standard's~~standard’s primary change is the requirement for entities to recognize a lease liability for payments and a right of use asset representing the right to use the leased asset during the term of operating lease arrangements. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of twelve months or less. Lessors’ accounting is largely unchanged from the previous accounting standard. In addition, the new standard expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which

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includes a number of practical expedients. This guidance is effective for fiscal years and interim periods within those fiscal ~~years~~year beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of this amendment on its ~~condensed~~ consolidated financial statements.

~~Stock Compensation~~

~~In March 2016, the FASB updated the general accounting principal for~~ ~~Stock Compensation~~. This update was issued as part of the FASB’s simplification initiative and affects all entities that issue share-based payment awards to their employees. The amendments in this update cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. This update is effective for annual and interim periods beginning after December 15, 2016. This guidance will be applied either prospectively, retrospectively or using a modified retrospective transition method, depending on the area covered in this update. Early adoption is permitted. The Company is currently evaluating the impact of this amendment on its condensed consolidated financial statements.

Income Taxes

In October 2016, the FASB amended the general accounting principal for Income Taxes, effective for annual and interim periods beginning after December 15, 2017. The amendment requires entities to recognize the tax consequences of intercompany asset transfers, except for inventory, at the transaction date. Current U.S. GAAP prohibits entities from recognizing the income tax consequences from intercompany asset transfers. The seller defers any net tax effect, and the buyer is prohibited from recognizing a deferred tax asset on the difference between the newly created tax basis of the asset in its tax jurisdiction and its financial statement carrying amount as reported in the ~~condensed~~ consolidated financial statements. The amendment requires entities to recognize these tax consequences in the period in which the transfer occurred. There will be an immediate effect on earnings if the tax rates in the seller’s and buyer’s tax jurisdictions are different. This amendment will be applied using a modified retrospective transition method with a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact of this amendment on its ~~condensed~~ consolidated financial statements.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Note Regarding Forward-Looking ~~and Cautionary~~ Statements

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, among others, statements relating to projections of the strategies, earnings, revenues, income or loss, ratios, future financial performance, and growth potential of the Company. The words “intend,” “expect,” “project,” “estimate,” “predict,” “anticipate,” “should,” “believe,” and other similar expressions also are intended to identify forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results, performance, and achievements could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements.

Numerous important factors could cause actual results and events to differ materially from those expressed or implied by forward-looking statements including, without limitation, (1) adverse capital and credit market conditions and their impact on the Company’s liquidity, access to capital and cost of capital, (2) the impairment of other financial institutions and its effect on the Company’s business, (3) requirements to post collateral or make payments due to declines in market value of assets subject to the Company’s collateral arrangements, (4) the fact that the determination of allowances and impairments taken on the Company’s investments is highly subjective, (5) adverse changes in mortality, morbidity, lapsation or claims experience, (6) changes in the Company’s financial strength and credit ratings and the effect of such changes on the Company’s future results of operations and financial condition, (7) inadequate risk analysis and underwriting, (8) general economic conditions or a prolonged economic downturn affecting the demand for insurance and reinsurance in the Company’s current and planned markets, (9) the availability and cost of collateral necessary for regulatory reserves and capital, (10) market or economic conditions that adversely affect the value of the Company’s investment securities or result in the impairment of all or a portion of the value of certain of the Company’s investment securities, that in turn could affect regulatory capital, (11) market or economic conditions that adversely affect the Company’s ability to make timely sales of investment securities, (12) risks inherent in the Company’s risk management and investment strategy, including changes in investment portfolio yields due to interest rate or credit quality changes, (13) fluctuations in U.S. or foreign currency exchange rates, interest rates, or securities and real estate markets, (14) adverse litigation or arbitration results, (15) the adequacy of reserves, resources and accurate information relating to settlements, awards and terminated and discontinued lines of business, (16) the stability of and actions by governments and economies in the markets in which the Company operates, including ongoing uncertainties regarding the amount of ~~United States~~U.S. sovereign debt and the credit ratings thereof, (17) competitive factors and competitors’ responses to the Company’s initiatives, (18) the success of the Company’s clients, (19) successful execution of the Company’s entry into new markets, (20) successful development and introduction of new products and distribution opportunities, (21) the Company’s ability to successfully integrate acquired blocks of business and entities, (22) action by regulators who have authority over the Company’s reinsurance operations in the jurisdictions in which it operates, (23) the Company’s dependence on third parties, including those insurance companies and reinsurers to which the Company cedes some reinsurance, third-party investment managers and others, (24) the threat of natural disasters, catastrophes, terrorist attacks, epidemics or pandemics anywhere in the world where the Company or its clients do business, (25) interruption or failure of the ~~Company's~~Company’s telecommunication, information technology or other operational systems, or the ~~Company's~~Company’s failure to maintain adequate security to protect the confidentiality or privacy of personal or sensitive data stored on such systems, (26) changes in laws, regulations, and accounting standards applicable to the Company, its subsidiaries, or its business, (27) the effect of the Company’s status as an insurance holding company and regulatory restrictions on its ability to pay principal of and interest on its debt obligations, and (28) other risks and uncertainties described in this document and in the Company’s other filings with the SEC.

Forward-looking statements should be evaluated together with the many risks and uncertainties that affect the Company’s business, including those mentioned in this document and ~~the cautionary statements~~ described in the periodic reports the Company files with the SEC. These forward-looking statements speak only as of the date on which they are made. The Company does not undertake any obligations to update these forward-looking statements, even though the Company’s situation may change in the future. ~~The Company qualifies all of its forward-looking statements by these cautionary statements.~~ For a discussion of these risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements, you are advised to see Item 1A – “Risk Factors” in the ~~2015~~2016 Annual ~~Report, as updated by Part II, Item 1A - “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2016.~~Report.

Overview

RGA is an insurance holding company that was formed on December 31, 1992. The condensed consolidated financial statements include the assets, liabilities and results of operations of RGA and its subsidiaries, all of which are wholly owned (collectively, the Company).

The Company ~~provides~~is one of the leading life reinsurers in North America based on premiums and the amount of life reinsurance in force, providing traditional reinsurance and ~~non-traditional reinsurance~~financial solutions to its clients. Traditional reinsurance includes individual and group life and health, disability, and critical illness reinsurance. ~~Non-traditional reinsurance~~Financial solutions includes longevity reinsurance, asset-intensive reinsurance, and financial reinsurance.

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The Company derives revenues primarily from renewal premiums from existing reinsurance treaties, new business premiums from existing or new reinsurance treaties, fee income from ~~non-traditional reinsurance~~financial solutions business and income earned on invested assets.

Historically, the Company’s primary business has been traditional life reinsurance, which involves reinsuring life insurance policies that are often in force for the remaining lifetime of the underlying individuals insured, with premiums earned typically over a

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period of 10 to 30 years. Each year, however, a portion of the business under existing treaties terminates due to, among other things, lapses or voluntary surrenders of underlying policies, deaths of insureds, and the exercise of recapture options by ceding companies. The Company has expanded its ~~non-traditional reinsurance~~financial solutions business, including significant asset-intensive ~~or annuity,~~ transactions, which allow its clients to take advantage of growth opportunities and manage their capital, longevity and investment risk.

The Company’s long-term profitability largely depends on the volume and amount of death- and health-related claims incurred and the ability to adequately price the risks it assumes. While death claims are reasonably predictable over a period of many years, claims become less predictable over shorter periods and are subject to significant fluctuation from quarter to quarter and year to year. Additionally, the Company generates profits on investment spreads associated with the reinsurance of investment type contracts and generates fees from financial reinsurance transactions which are typically shorter duration than its traditional life reinsurance business. The Company believes its sources of liquidity are sufficient to cover potential claims payments on both a short-term and long-term basis.

As is customary in the reinsurance business, clients continually update, refine, and revise reinsurance information provided to the Company. Such revised information is used by the Company in preparation of its condensed consolidated financial statements and the financial effects resulting from the incorporation of revised data are reflected in the current period.

The Company’s long-term profitability primarily depends on the volume and amount of death and health-related claims incurred and the ability to adequately price the risks it assumes. While death claims are reasonably predictable over a period of many years, claims become less predictable over shorter periods and are subject to significant fluctuation from quarter to quarter and year to year. The Company believes its sources of liquidity are sufficient to cover potential claims payments on both a short-term and long-term basis.Segment Presentation

The Company has geographic-based and business-based operational ~~segments: U.S. and Latin America; Canada; Europe, Middle East and Africa; Asia Pacific; and Corporate and Other.~~segments. Geographic-based operations are further segmented into traditional and ~~non-traditional~~financial solutions businesses. ~~The Company’s segments primarily write reinsurance business that is wholly or partially retained in one or more of RGA’s reinsurance subsidiaries.~~

The Company allocates capital to its segments based on an internally developed economic capital model, the purpose of which is to measure the risk in the business and to provide a consistent basis upon which capital is deployed. The economic capital model considers the unique and specific nature of the risks inherent in RGA’s businesses.

As a result of the economic capital allocation process, a portion of investment income is credited to the segments based on the level of allocated capital. In addition, the segments are charged for excess capital utilized above the allocated economic capital basis. This charge is included in policy acquisition costs and other insurance expenses. Segment investment performance varies with the composition of investments and the relative allocation of capital to the operating segments.

Segment premium levels can be significantly influenced by currency fluctuations, large transactions, mix of business and reporting practices of ceding companies, and therefore may fluctuate from period to period. Although reasonably predictable over a period of years, segment claims experience can be volatile over shorter periods. See “Results of Operations by Segment” below for further information about the Company’s segments.

~~Results of Operations~~

~~Consolidated~~

~~The following table summarizes net income for the periods presented.~~

Three months ended September 30, Nine months ended September 30,
2016 2015 2016 2015
Revenues: (Dollars in thousands, except per share data)
Net premiums $ 2,251,758
$ 2,089,345
$ 6,755,708
$ 6,242,240
Investment income, net of related expenses 489,727
389,597
1,414,659
1,267,027
Investment related gains (losses), net 86,624
(111,346 ) 84,002
(119,941 )
Other revenues 72,468
71,038
197,844
200,261
Total revenues 2,900,577
2,438,634
8,452,213
7,589,587
Benefits and Expenses:
Claims and other policy benefits 1,993,064
1,831,819
5,877,330
5,473,453
Interest credited 116,848
34,008
300,602
231,932
Policy acquisition costs and other insurance expenses 300,962
249,702
940,406
827,157
Other operating expenses 152,556
142,270
469,875
395,488
Interest expense 43,063
35,565
96,201
107,043
Collateral finance and securitization expense 6,484
5,133
19,396
16,462
Total benefits and expenses 2,612,977
2,298,497
7,703,810
7,051,535
Income before income taxes
287,600
140,137
748,403
538,052
Provision for income taxes 88,881
56,603
237,109
199,013
Net income $ 198,719
$ 83,534
$ 511,294
$ 339,039

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Consolidated ~~net income increased $115.2 million, or 137.9%, and $172.3 million, or 50.8%, for the three and nine months ended September 30, 2016, respectively, as compared to the same periods in 2015.~~ Results of Operations



	Three months ended March 31,
	2017			2016
Revenues:	(Dollars in thousands, except per share data)
Net premiums	$	2,365,696		$	2,157,005
Investment income, net of related expenses	514,364			417,266
Investment related gains (losses), net:
Other-than-temporary impairments on fixed maturity securities	(17,189		)	(33,817		)
Other investment related gains (losses), net	77,712			(87,069		)
Total investment related gains (losses), net	60,523			(120,886		)
Other revenues	68,157			59,183
Total revenues	3,008,740			2,512,568
Benefits and Expenses:
Claims and other policy benefits	2,106,145			1,886,764
Interest credited	107,684			87,905
Policy acquisition costs and other insurance expenses	379,389			233,763
Other operating expenses	158,506			157,424
Interest expense	42,402			32,807
Collateral finance and securitization expense	6,770			6,325
Total benefits and expenses	2,800,896			2,404,988
Income before income taxes	207,844			107,580
Provision for income taxes	62,332			31,108
Net income	$	145,512		$	76,472
Earnings per share:
Basic earnings per share	$	2.26		$	1.18
Diluted earnings per share	$	2.22		$	1.17
Dividends declared per share	$	0.41		$	0.37

Consolidated income before income taxes increased ~~$147.5~~$100.3 million, or ~~105.2%, and $210.4 million, or 39.1%~~93.2%, for the three ~~and nine~~ months ended ~~September 30, 2016, respectively,~~March 31, 2017, as compared to the same ~~periods~~period in ~~2015.~~2016. The ~~increases~~increase in income ~~before income taxes~~ for ~~the third quarter and~~ first ~~nine~~three months ~~were~~of 2017 was primarily due to ~~an increase in~~ investment related gains ~~higher investment income and improved mortality experience in the U.S. operations compared to the prior year. The increase in~~associated with fair value changes on embedded derivatives. Current-period investment related gains ~~was largely due to~~primarily reflect favorable changes in the fair value of embedded derivatives on modco or funds withheld treaties, ~~within~~primarily due to changes in interest rates and credit spreads. Additionally, the ~~U.S. segment. The effect of the change in fair value of these embedded derivatives on income is discussed below. The increase in income before income taxes for the third quarter also reflects~~Company reported a decrease in impairments on fixed maturity and equity securities of ~~$23.1~~$16.6 million in the first three months of 2017, as compared to the same period in ~~2015. Results for the first nine months of 2016 also benefited from a $15.4 million reduction in interest expense due to the effective settlement of uncertain tax positions recognized~~2016. Adverse mortality experience in the ~~second quarter.~~U.S. and Canada partially offset the favorable investment related variances. Foreign currency exchange fluctuations relative to the prior year ~~unfavorably affected~~did not have a material effect on income before income ~~taxes by approximately $4.4 million and $19.3 million for the third quarter and first nine months of 2016, as compared to the same periods in 2015.~~taxes.

The Company recognizes in consolidated income, any changes in the fair value of embedded derivatives on modco or funds withheld treaties, equity-indexed annuity treaties (“EIAs”) and variable annuity products. The combined changes in these three types of embedded derivatives, after adjustment for deferred acquisition costs and retrocession, resulted in an increase in consolidated income before income taxes of approximately ~~$212.8 million and $88.7~~$189.8 million in the ~~third quarter and~~ first ~~nine~~three months of ~~2016, respectively,~~2017, as compared to the same ~~periods~~period in ~~2015.~~2016. This fluctuation does not affect current cash flows, crediting rates or spread performance on the underlying treaties. Therefore, management believes it is helpful to distinguish between the effects of changes in these embedded derivatives, net of related hedging activity and deferred acquisition costs, and the primary factors that drive profitability of the underlying treaties, namely investment income, fee income, and interest credited. The individual effect on income before income taxes for these three types of embedded derivatives is as follows:

The change in the value of embedded derivatives related to reinsurance treaties written on a modco or funds withheld basis are subject to the general accounting principles for derivatives and hedging related to embedded derivatives. The unrealized gains and losses associated with these embedded derivatives, after adjustment for deferred acquisition costs, ~~resulted in an increase in~~increased income before income taxes ~~of $33.0 million and $30.7~~by $81.0 million in the ~~third quarter and~~ first ~~nine~~three months of ~~2016, respectively,~~2017, as compared to the same ~~periods~~period in ~~2015.~~2016.

Changes in risk-free rates used in the fair value estimates of embedded derivatives associated with EIAs affect the amount of unrealized gains and losses the Company recognizes. The unrealized gains and losses associated with EIAs, after adjustment for deferred acquisition costs and retrocession, ~~resulted in a decrease in~~increased income before income taxes ~~of $4.2 million and $8.8~~by $24.7 million in the ~~third quarter and~~ first ~~nine~~three months of ~~2016, respectively,~~2017, as compared to the same ~~periods~~period in ~~2015.~~2016.

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The change in the Company’s liability for variable annuities associated with guaranteed minimum living benefits affects the amount of unrealized gains and losses the Company recognizes. The unrealized gains and losses associated with guaranteed minimum living benefits, after adjustment for deferred acquisition costs, increased income before income taxes by ~~$184.0 million and $66.8~~$84.1 million in the ~~third quarter and~~ first ~~nine~~three months of ~~2016, respectively,~~2017, as compared to the same ~~periods~~period in ~~2015.~~2016. After consideration of the change in fair value of freestanding derivatives used to hedge this liability, income before income taxes increased by $7.5 million, as compared to the same period in 2016.

Consolidated net premiums increased ~~$162.4~~$208.7 million, or ~~7.8%, and $513.5 million, or 8.2%~~9.7%, for the three ~~and nine~~ months ended ~~September 30, 2016,~~March 31, 2017, as compared to the same ~~periods~~period in ~~2015, primarily~~2016, due to growth in life reinsurance in ~~force and large in force block transactions entered into during the latter part of 2015.~~force. Foreign currency exchange fluctuations ~~unfavorably affected net premiums by approximately $21.0 million and $136.9 million for the third quarter and first nine months of 2016, as compared~~relative to the ~~same periods in 2015.~~prior year did not have a material effect on net premiums. Consolidated assumed life insurance in force increased to ~~$3,082.8~~$3,136.8 billion as of ~~September 30, 2016~~March 31, 2017 from ~~$2,849.4~~$3,068.4 billion as of ~~September 30, 2015~~March 31, 2016 due to new business production and in force transactions, partially offset by adverse foreign currency exchange fluctuations. The Company added new business production, measured by face amount of insurance in force, of ~~$81.3~~$91.6 billion and ~~$84.6 billion during the third quarter of 2016 and 2015, respectively, and $296.4 billion and $262.1~~$107.8 billion during the first ~~nine~~three months of ~~2016~~2017 and ~~2015,~~2016, respectively. Adverse foreign currency exchange fluctuations offset the increase in assumed life insurance in force from ~~September 30, 2015~~March 31, 2016 by ~~$22.3~~$68.5 billion. Management believes industry consolidation, regulatory changes and the established practice of reinsuring mortality and morbidity risks should continue to provide opportunities for growth, albeit at rates less than historically experienced in some markets.

Consolidated investment income, net of related expenses, increased ~~$100.1~~$97.1 million, or ~~25.7%, and $147.6 million, or 11.7%~~23.3%, for the three ~~and nine~~ months ended ~~September 30, 2016,~~March 31, 2017, as compared to the same ~~periods~~period in ~~2015.~~2016. The increase in ~~market~~fair value ~~changes related~~attributed to the Company’s funds withheld at interest investment associated with the reinsurance of certain EIAs increased investment income by ~~$59.9 million and $24.7~~$79.0 million in the ~~third quarter and~~ first ~~nine~~three months of ~~2016, respectively,~~2017, as compared to the same ~~periods~~period in ~~2015.~~2016. The effect on investment income of the EIA's ~~market~~fair value changes is substantially offset by a corresponding change in interest credited to policyholder account balances resulting in an insignificant effect on net income. ~~The increase for the first nine months of 2016 also reflects strong variable investment income on alternative investments and investment prepayments and fees.~~

~~Table of Contents~~

Also contributing to the increase in investment income is a larger average invested asset base, excluding spread related business, partially offset by a decrease in the average investment yield. Average invested assets at amortized cost, excluding spread related business, for the ~~nine~~three months ended ~~September 30, 2016~~March 31, 2017 totaled ~~$23.0~~$25.2 billion, a ~~10.6%~~12.7% increase over ~~September 30, 2015.~~March 31, 2016. The average yield earned on investments, excluding spread related business, was ~~4.43%~~4.41% and ~~4.66%~~4.46% for the ~~third quarter of 2016 and 2015, respectively, and 4.53% and 4.77% for the nine~~three months ended ~~September 30,~~March 31, 2017 and 2016, ~~and 2015,~~ respectively. The average yield will vary from quarter to quarter and year to year depending on a number of variables, including the prevailing interest rate and credit spread environment, prepayment fees and make-whole premiums, changes in the mix of the underlying investments and cash balances, ~~prepayment fees recorded on the early payoff of certain investments~~ and the timing of dividends and distributions on certain investments. A continued low interest rate environment is expected to put downward pressure on this yield in future reporting periods. A portion of investment income is allocated to the operating segments based upon average assets and related capital levels deemed appropriate to support ~~the~~ segment operations.

Total investment related gains (losses), net improved by ~~$198.0 million and $203.9~~$181.4 million for the three ~~and nine~~ months ended ~~September 30, 2016,~~March 31, 2017, as compared to the same ~~periods~~period in ~~2015.~~2016. The improvement ~~in the third quarter of 2016 was~~is primarily due to a favorable change in the value of embedded derivatives related to reinsurance treaties written on a modco or funds withheld basis of ~~$95.2~~$161.0 million, reflecting the impact of changes in interest rates and credit spreads on the calculation of fair value. In addition, impairments on fixed maturity and equity securities decreased by $16.6 million in the first three months of 2017, as compared to the same period in 2015. During the first nine months of 2016, the favorable change in the value of these embedded derivatives was $105.4 million, as compared to the same period in 2015. The third quarter also reflects a decrease in impairments on fixed maturity and equity securities of $23.1 million, compared to the same period in 2015.2016. See Note 4 - “Investments” and Note 5 - “Derivative Instruments” in the Notes to Condensed Consolidated Financial Statements for additional information on the impairment losses and derivatives.

The effective tax rate on a consolidated basis was ~~30.9%~~30.0% and ~~40.4% for the three months ended September 30, 2016 and 2015, respectively, and 31.7% and 37.0%~~28.9% for the first ~~nine~~quarter 2017 and 2016, respectively. The effective tax rate for the first three months of ~~2016 and 2015, respectively. The third quarter of 2016 effective tax rate~~2017 was lower than the U.S. Statutory rate of ~~35.0%~~35% primarily due to income generated in non-U.S. jurisdictions with lower tax rates than the U.S., and the impact of adopting newly-effective accounting guidance related to stock compensation as of January 1, 2017. As a result of ~~effectively settling uncertain~~the adoption, the excess tax ~~positions during the quarter and adjustments~~benefits related to share-based awards are now recorded in income tax expense rather than the ~~filing of~~balance sheet. See Note 12 - “New Accounting Standards” in the ~~U.S. Federal Income tax return.~~Notes to Condensed Consolidated Financial Statements for additional information. The ~~first nine months of 2016~~ effective tax rate for the first quarter of 2016 was lower than the U.S. Statutory rate of ~~35.0%~~35% primarily as a result of tax benefits from income in non-U.S. jurisdictions with lower tax rates than the U.S. ~~The third quarter~~ and ~~first nine months effective tax rates were further reduced by~~ differences in tax bases in foreign jurisdictions. The third quarter and first nine months of 2015 effective tax rates were higher than the U.S. Statutory rate of 35.0% primarily as a result of a tax accrual related to the Active Financing Exception business extender provision that the U.S. Congress did not pass prior to the end of the quarter and a loss in Australia which has a lower tax rate than the U.S. The high rate was partially offset with tax benefits associated with claims experience on certain treaties and income in other jurisdictions with rates lower than the U.S.

Critical Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the application of accounting policies that often involve a significant degree of judgment. Management, on an ongoing basis, reviews estimates and assumptions used in the preparation of financial statements. If management determines that modifications in assumptions and estimates are appropriate given current facts and circumstances, results of operations and financial position as reported in the condensed consolidated financial statements could change significantly.

Table of Contents

Management believes the critical accounting policies relating to the following areas are most dependent on the application of estimates and assumptions:

Premiums receivable;

Deferred acquisition costs;

Liabilities for future policy benefits and incurred but not reported claims;

Valuation of investments and other-than-temporary impairments to specific investments;

Valuation of embedded derivatives; and

Income taxes.

A discussion of each of the critical accounting policies may be found in the Company’s ~~2015~~2016 Annual Report under “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies.”

~~Further discussion and analysis of the results for 2016 compared to 2015 are presented by segment.~~

5348

Table of Contents

Results of Operations by Segment

U.S. and Latin America Operations

The U.S. and Latin America operations include business generated by its offices in the U.S., Mexico and Brazil. The offices in Mexico and Brazil provide services to clients in other Latin American countries. U.S. and Latin America operations consist of two major segments: Traditional and ~~Non-Traditional.~~Financial Solutions. The Traditional segment primarily specializes in individual mortality-risk reinsurance and to a lesser extent, group, health and long-term care reinsurance. The ~~Non-Traditional~~Financial Solutions segment consists of Asset-Intensive and Financial Reinsurance. Asset-Intensive within the ~~Non-Traditional~~Financial Solutions segment provides coinsurance of annuities and corporate-owned life insurance policies and to a lesser extent also issues fee-based synthetic guaranteed investment contracts, which include investment-only, stable value contracts. Financial Reinsurance within the ~~Non-Traditional~~Financial Solutions segment primarily involves assisting ceding companies in meeting applicable regulatory requirements by enhancing the ceding companies’ financial strength and regulatory surplus position through relatively low risk reinsurance transactions. Typically these transactions do not qualify as reinsurance under GAAP, due to the low-risk nature of the transactions, so only the related net fees are reflected in other revenues on the ~~condensed~~ consolidated statements of income.


For the three months ended September 30, 2016:				Non-Traditional
For the three months ended March 31, 2017:															Financial Solutions
(dollars in thousands)				Asset-Intensive			Financial Reinsurance		Total U.S. and Latin America						Asset-Intensive			Financial Reinsurance		Total U.S. and Latin America
	Traditional											Traditional
Revenues:
Net premiums	$	1,277,491		$	5,369		$	—	$	1,282,860		$	1,304,345		$	4,635		$	—	$	1,308,980
Investment income, net of related expenses	167,898			167,683			1,038		336,619			178,995			187,153			1,664		367,812
Investment related gains (losses), net	(3,394		)	59,661			—		56,267			1,965			57,771			—		59,736
Other revenues	2,922			23,417			18,967		45,306			3,198			23,214			24,409		50,821
Total revenues	1,444,917			256,130			20,005		1,721,052			1,488,503			272,773			26,073		1,787,349
Benefits and expenses:
Claims and other policy benefits	1,131,507			18,927			—		1,150,434			1,225,640			17,536			—		1,243,176
Interest credited	20,628			86,742			—		107,370			20,289			79,157			—		99,446
Policy acquisition costs and other insurance expenses	184,766			56,497			3,492		244,755			180,810			83,653			5,941		270,404
Other operating expenses	30,935			5,232			2,531		38,698			31,804			6,657			2,316		40,777
Total benefits and expenses	1,367,836			167,398			6,023		1,541,257			1,458,543			187,003			8,257		1,653,803
Income before income taxes	$	77,081		$	88,732		$	13,982	$	179,795		$	29,960		$	85,770		$	17,816	$	133,546

For the three months ended September 30, 2015:				Non-Traditional
For the three months ended March 31, 2016:															Financial Solutions
(dollars in thousands)				Asset-Intensive			Financial Reinsurance		Total U.S. and Latin America						Asset-Intensive			Financial Reinsurance		Total U.S. and Latin America
	Traditional											Traditional
Revenues:
Net premiums	$	1,150,936		$	5,177		$	—	$	1,156,113		$	1,234,394		$	6,219		$	—	$	1,240,613
Investment income, net of related expenses	154,210			104,055			1,438		259,703			165,023			117,215			2,607		284,845
Investment related gains (losses), net	926			(68,990		)	—		(68,064		)	(2,100		)	(128,551		)	—		(130,651		)
Other revenues	6,566			28,973			16,446		51,985			3,500			22,834			18,581		44,915
Total revenues	1,312,638			69,215			17,884		1,399,737			1,400,817			17,717			21,188		1,439,722
Benefits and expenses:
Claims and other policy benefits	1,049,973			16,832			—		1,066,805			1,119,442			19,833			—		1,139,275
Interest credited	20,999			18,535			—		39,534			21,400			62,558			—		83,958
Policy acquisition costs and other insurance expenses	158,452			4,773			2,535		165,760			177,078			(39,656		)	2,568		139,990
Other operating expenses	27,562			4,893			3,276		35,731			31,799			5,812			2,686		40,297
Total benefits and expenses	1,256,986			45,033			5,811		1,307,830			1,349,719			48,547			5,254		1,403,520
Income before income taxes	$	55,652		$	24,182		$	12,073	$	91,907		$	51,098		$	(30,830	)	$	15,934	$	36,202




(Mark One)
x		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
x		OF THE SECURITIES EXCHANGE ACT OF 1934
		For the quarterly period ended ~~September 30, 2016~~March 31, 2017
		OR
¨		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
¨		OF THE SECURITIES EXCHANGE ACT OF 1934
		Commission File Number 1-11848



MISSOURI		43-1627032
(State or other jurisdiction		(IRS employer
of incorporation or organization)		identification number)


Item		Page		Page

	PART I – FINANCIAL INFORMATION		PART I – FINANCIAL INFORMATION

1	Financial Statements		Financial Statements
	Condensed Consolidated Balance Sheets (Unaudited) September 30, 2016 and December 31, 2015	3
	Condensed Consolidated Statements of Income (Unaudited) Three and nine months ended September 30, 2016 and 2015	4
	Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three and nine months ended September 30, 2016 and 2015	5	Condensed Consolidated Balance Sheets (Unaudited) March 31, 2017 and December 31, 2016	3
	Condensed Consolidated Statements of Cash Flows (Unaudited) Nine months ended September 30, 2016 and 2015	6	Condensed Consolidated Statements of Income (Unaudited) Three months ended March 31, 2017 and 2016	4
	Notes to Condensed Consolidated Financial Statements (Unaudited):	7	Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three months ended March 31, 2017 and 2016	5
	1. Business and Basis of Presentation	7	Condensed Consolidated Statements of Cash Flows (Unaudited) Three months ended March 31, 2017 and 2016	6
	2. Earnings Per Share	7	Notes to Condensed Consolidated Financial Statements (Unaudited):	7
	3. Equity	8	1. Business and Basis of Presentation	7
	4. Investments	9	2. Earnings Per Share	7
	5. Derivative Instruments	19	3. Equity	8
	6. Fair Value of Assets and Liabilities	27	4. Investments	10
	7. Segment Information	43	5. Derivative Instruments	19
	8. Commitments, Contingencies and Guarantees	44	6. Fair Value of Assets and Liabilities	26
	9. Income Tax	45	7. Segment Information	38
	10. Employee Benefit Plans	46	8. Commitments, Contingencies and Guarantees	39
	11. Equity Based Compensation	46	9. Income Tax	40
	12. Reinsurance	46	10. Employee Benefit Plans	41
	13. Financing Activities	47	11. Reinsurance	41
	14. New Accounting Standards	47	12. New Accounting Standards	42
2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	50	Management’s Discussion and Analysis of Financial Condition and Results of Operations	44
3	Quantitative and Qualitative Disclosures About Market Risk	83	Quantitative and Qualitative Disclosure About Market Risk	74
4	Controls and Procedures	84	Controls and Procedures	74

	PART II – OTHER INFORMATION		PART II – OTHER INFORMATION

1	Legal Proceedings	85	Legal Proceedings	74
1A	Risk Factors	85	Risk Factors	74
2	Unregistered Sales of Equity Securities and Use of Proceeds	85	Unregistered Sales of Equity Securities and Use of Proceeds	74
6	Exhibits	85	Exhibits	75
	Signatures	86	Signatures	76
	Index to Exhibits	87	Index to Exhibits	77


	September 30, 2016			December 31, 2015			March 31, 2017			December 31, 2016
	(Dollars in thousands, except share data)						(Dollars in thousands, except share data)
Assets
Fixed maturity securities:
Available-for-sale at fair value (amortized cost of $30,097,896 and $28,322,977)	$	33,536,419		$	29,642,905
Mortgage loans on real estate (net of allowances of $6,746 and $6,813)	3,607,700			3,129,951
Available-for-sale at fair value (amortized cost of $30,540,567 and $30,211,787)							$	32,694,793		$	32,093,625
Mortgage loans on real estate (net of allowances of $7,786 and $7,685)							3,871,309			3,775,522
Policy loans	1,414,963			1,468,796			1,402,940			1,427,602
Funds withheld at interest	5,922,656			5,880,203			5,943,450			5,875,919
Short-term investments	126,702			558,284			54,288			76,710
Other invested assets	1,777,065			1,298,120			1,429,175			1,591,940
Total investments	46,385,505			41,978,259			45,395,955			44,841,318
Cash and cash equivalents	1,379,693			1,525,275			1,178,114			1,200,718
Accrued investment income	391,837			339,452			360,225			347,173
Premiums receivable and other reinsurance balances	1,834,362			1,797,504			2,008,409			1,930,755
Reinsurance ceded receivables	694,906			637,859			760,715			683,972
Deferred policy acquisition costs	3,406,093			3,392,437			3,300,548			3,338,605
Other assets	740,102			712,366			801,854			755,338
Total assets	$	54,832,498		$	50,383,152		$	53,805,820		$	53,097,879
Liabilities and Stockholders’ Equity
Future policy benefits	$	19,634,157		$	19,612,251		$	19,832,483		$	19,581,573
Interest-sensitive contract liabilities	14,217,831			13,663,873			14,039,919			14,029,354
Other policy claims and benefits	4,304,491			4,094,640			4,649,192			4,263,026
Other reinsurance balances	353,426			296,899			390,019			388,989
Deferred income taxes	3,071,995			2,218,328			2,863,744			2,770,640
Other liabilities	1,321,017			1,165,071			996,288			1,041,880
Short-term debt	299,876			—
Long-term debt	2,788,834			2,297,548			2,788,619			3,088,635
Collateral finance and securitization notes	847,389			899,161			825,526			840,700
Total liabilities	46,839,016			44,247,771			46,385,790			46,004,797
Commitments and contingent liabilities (See Note 8)
Stockholders’ Equity:
Preferred stock - par value $.01 per share, 10,000,000 shares authorized, no shares issued or outstanding	—			—			—			—
Common stock - par value $.01 per share, 140,000,000 shares authorized, 79,137,758 shares issued at September 30, 2016 and December 31, 2015	791			791
Additional paid-in capital	1,842,390			1,816,142
Common stock - par value $.01 per share, 140,000,000 shares authorized, 79,137,758 shares issued at March 31, 2017 and December 31, 2016							791			791
Additional paid-in-capital							1,858,226			1,848,611
Retained earnings	5,039,470			4,620,303			5,329,464			5,199,130
Treasury stock, at cost - 14,931,485 and 13,933,232 shares	(1,101,495		)	(1,010,139		)
Treasury stock, at cost - 14,749,207 and 14,835,256 shares							(1,089,606		)	(1,094,779		)
Accumulated other comprehensive income	2,212,326			708,284			1,321,155			1,139,329
Total stockholders’ equity	7,993,482			6,135,381			7,420,030			7,093,082
Total liabilities and stockholders’ equity	$	54,832,498		$	50,383,152		$	53,805,820		$	53,097,879


	Three months ended September 30,						Nine months ended September 30,						Three months ended March 31,
	2016			2015			2016			2015			2017			2016
Comprehensive income (loss)	(Dollars in thousands)
Comprehensive income													(Dollars in thousands)
Net income	$	198,719		$	83,534		$	511,294		$	339,039		$	145,512		$	76,472
Other comprehensive income (loss), net of tax:
Other comprehensive income, net of tax:
Foreign currency translation adjustments	(28,233		)	(105,504		)	59,442			(201,340		)	(22,213		)	77,733
Net unrealized investment gains	254,658			(139,066		)	1,445,776			(552,783		)	203,115			547,225
Defined benefit pension and postretirement plan adjustments	527			1,685			(1,176		)	3,473			924			(2,859		)
Total other comprehensive income (loss), net of tax	226,952			(242,885		)	1,504,042			(750,650		)
Total comprehensive income (loss)	$	425,671		$	(159,351	)	$	2,015,336		$	(411,611	)
Total other comprehensive income, net of tax													181,826			622,099
Total comprehensive income													$	327,338		$	698,571



	Issued	Held In Treasury		Outstanding
Balance, December 31, 2015	79,137,758	13,933,232		65,204,526
Common stock acquired	—	1,356,892		(1,356,892	)
Stock-based compensation ⁽¹⁾	—	(358,639	)	358,639
Balance, September 30, 2016	79,137,758	14,931,485		64,206,273


(1)	Represents net shares issued from treasury pursuant to the ~~Company's~~Company’s equity-based compensation programs.


	AOCI, Net of Income Tax												Accumulated Other Comprehensive Income (Loss), Net of Income Tax
	Accumulated Currency Translation Adjustments			Unrealized Appreciation (Depreciation) of Investments⁽¹⁾			Pension and Postretirement Benefits			Total			Accumulated Currency Translation Adjustments			Unrealized Appreciation (Depreciation) of Investments⁽¹⁾			Pension and Postretirement Benefits			Total
Balance, December 31, 2015	$	(181,151	)	$	935,697		$	(46,262	)	$	708,284
Balance, December 31, 2016													$	(172,541	)	$	1,355,033		$	(43,163	)	$	1,139,329
Other comprehensive income (loss) before reclassifications	68,271			2,191,823			(6,079		)	2,254,015			(50,735		)	283,443			(27		)	232,681
Amounts reclassified to (from) AOCI	—			(109,145		)	4,253			(104,892		)	—			5,762			1,456			7,218
Deferred income tax benefit (expense)	(8,829		)	(636,902		)	650			(645,081		)	28,522			(86,090		)	(505		)	(58,073		)
Balance, September 30, 2016	$	(121,709	)	$	2,381,473		$	(47,438	)	$	2,212,326
Balance, March 31, 2017													$	(194,754	)	$	1,558,148		$	(42,239	)	$	1,321,155


	Amount Reclassified from AOCI													Amount Reclassified from AOCI
	Three months ended September 30,						Nine months ended September 30,							Three months ended March 31,
Details about AOCI Components	2016			2015			2016			2015			Affected Line Item in Statements of Income	2017			2016			Affected Line Item in Statement of Income
Net unrealized investment gains (losses):
Net unrealized gains (losses) on available-for-sale securities	$	72,351		$	(31,506	)	$	84,250		$	(26,598	)	Investment related gains (losses), net
Cash flow hedges - Interest rate swaps	200			(60		)	454			231			(1)
Net unrealized gains and losses on available-for-sale securities														$	(11,857	)	$	(18,291	)	Investment related gains (losses), net
Cash flow hedges - Currency/Interest rate														197			160			(1)
Cash flow hedges - Forward bond purchase commitments	137			127			(120		)	1,094			(1)	50			788			(1)
Deferred policy acquisition costs attributed to unrealized gains and losses	12,090			(9,543		)	24,561			(9,517		)	(2)	5,848			7,106			(2)
Total	84,778			(40,982		)	109,145			(34,790		)		(5,762		)	(10,237		)
Provision for income taxes	(27,680		)	13,948			(32,676		)	13,410				3,194			4,649
Net unrealized gains (losses), net of tax	$	57,098		$	(27,034	)	$	76,469		$	(21,380	)		$	(2,568	)	$	(5,588	)
Amortization of defined benefit plan items:
Prior service cost	$	391		$	(82	)	$	238		$	(245	)	(3)
Actuarial gains (losses)	(1,177		)	(1,955		)	(4,491		)	(3,757		)	(3)
Prior service cost (credit)														$	82		$	(78	)	(3)
Actuarial gains/(losses)														(1,538		)	(1,473		)	(3)
Total	(786		)	(2,037		)	(4,253		)	(4,002		)		(1,456		)	(1,551		)
Provision for income taxes	276			713			1,489			1,401				510			543
Amortization of defined benefit plans, net of tax	$	(510	)	$	(1,324	)	$	(2,764	)	$	(2,601	)		$	(946	)	$	(1,008	)

Total reclassifications for the period	$	56,588		$	(28,358	)	$	73,705		$	(23,981	)		$	(3,514	)	$	(6,596	)


(1)	See Note 5 - ~~"Derivative Instruments"~~“Derivative Instruments” for additional information on cash flow hedges.


(2)	This AOCI component is included in the computation of the deferred policy acquisition cost. See Note 8 – “Deferred Policy Acquisition Costs” of the ~~2015~~2016 Annual Report for additional details.


September 30, 2016:	Amortized		Unrealized		Unrealized		Estimated Fair		% of		Other-than- temporary impairments
March 31, 2017:														Amortized		Unrealized		Unrealized		Estimated Fair		% of		Other-than- temporary impairments
	Cost		Gains		Losses		Value		Total		in AOCI			Cost		Gains		Losses		Value		Total		in AOCI
Available-for-sale:
Corporate securities	$	18,762,648	$	1,498,816	$	96,616	$	20,164,848	60.2	%	$	—		$	19,281,539	$	1,037,337	$	157,423	$	20,161,453	61.8	%	$	—
Canadian and Canadian provincial governments	2,598,625		1,541,754		—		4,140,379		12.3		—			2,601,403		1,122,418		3,457		3,720,364		11.4		—
Residential mortgage-backed securities	1,247,677		67,854		3,839		1,311,692		3.9		(300		)	1,281,171		34,382		11,676		1,303,877		4.0		—
Asset-backed securities	1,388,263		13,706		19,395		1,382,574		4.1		275			1,379,251		14,480		13,141		1,380,590		4.2		275
Commercial mortgage-backed securities	1,402,249		73,402		618		1,475,033		4.4		(1,609		)	1,272,020		24,353		7,035		1,289,338		3.9		—
U.S. government and agencies	1,479,295		80,402		161		1,559,536		4.7		—			1,522,651		15,135		55,334		1,482,452		4.5		—
State and political subdivisions	549,669		72,598		4,418		617,849		1.8		—			566,553		40,471		11,567		595,457		1.8		—
Other foreign government, supranational and foreign government-sponsored enterprises	2,669,470		220,274		5,236		2,884,508		8.6		—			2,635,979		136,850		11,567		2,761,262		8.4		—
Total fixed maturity securities	$	30,097,896	$	3,568,806	$	130,283	$	33,536,419	100.0	%	$	(1,634	)	$	30,540,567	$	2,425,426	$	271,200	$	32,694,793	100.0	%	$	275
Non-redeemable preferred stock	$	56,944	$	2,512	$	6,604	$	52,852	12.6	%				$	33,656	$	360	$	2,801	$	31,215	28.0	%
Other equity securities	360,839		7,013		456		367,396		87.4					83,473		532		3,604		80,401		72.0
Total equity securities	$	417,783	$	9,525	$	7,060	$	420,248	100.0	%				$	117,129	$	892	$	6,405	$	111,616	100.0	%


December 31, 2015:	Amortized		Unrealized		Unrealized		Estimated Fair		% of		Other-than- temporary impairments
December 31, 2016:														Amortized		Unrealized		Unrealized		Estimated Fair		% of		Other-than- temporary impairments
	Cost		Gains		Losses		Value		Total		in AOCI			Cost		Gains		Losses		Value		Total		in AOCI
Available-for-sale:
Corporate securities	$	17,575,507	$	599,718	$	467,069	$	17,708,156	59.7	%	$	—		$	18,924,711	$	911,618	$	217,245	$	19,619,084	61.1	%	$	—
Canadian and Canadian provincial governments	2,469,009		1,110,282		2,532		3,576,759		12.1		—			2,561,605		1,085,982		3,541		3,644,046		11.4		—
Residential mortgage-backed securities	1,277,998		45,152		11,673		1,311,477		4.4		(300		)	1,258,039		33,917		13,380		1,278,576		4.0		(375		)
Asset-backed securities	1,219,000		12,052		18,376		1,212,676		4.1		354			1,443,822		9,350		23,828		1,429,344		4.5		275
Commercial mortgage-backed securities	1,456,848		37,407		11,168		1,483,087		5.0		(1,609		)	1,342,440		28,973		7,759		1,363,654		4.2		—
U.S. government and agencies	1,423,791		15,586		57,718		1,381,659		4.7		—			1,518,702		12,644		63,044		1,468,302		4.6		—
State and political subdivisions	480,067		40,014		9,067		511,014		1.7		—			566,761		37,499		12,464		591,796		1.8		—
Other foreign government, supranational and foreign government-sponsored enterprises	2,420,757		78,964		41,644		2,458,077		8.3		—			2,595,707		123,054		19,938		2,698,823		8.4		—
Total fixed maturity securities	$	28,322,977	$	1,939,175	$	619,247	$	29,642,905	100.0	%	$	(1,555	)	$	30,211,787	$	2,243,037	$	361,199	$	32,093,625	100.0	%	$	(100	)
Non-redeemable preferred stock	$	85,645	$	7,837	$	5,962	$	87,520	69.5	%				$	55,812	$	1,648	$	6,337	$	51,123	18.6	%
Other equity securities	40,584		—		2,242		38,342		30.5					229,767		1,792		7,321		224,238		81.4
Total equity securities	$	126,229	$	7,837	$	8,204	$	125,862	100.0	%				$	285,579	$	3,440	$	13,658	$	275,361	100.0	%


	September 30, 2016				December 31, 2015				March 31, 2017				December 31, 2016
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities pledged as collateral	$	191,791	$	201,124	$	169,678	$	176,782	$	183,860	$	189,387	$	207,066	$	210,676
Fixed maturity securities received as collateral	n/a		320,838		n/a		242,914		n/a		414,893		n/a		300,925
Assets in trust held to satisfy collateral requirements	12,258,854		13,525,565		10,535,729		10,928,393		12,157,811		13,015,274		12,135,258		12,874,370


	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Available-for-sale:
Due in one year or less	$	728,318	$	733,750	$	837,801	$	849,530
Due after one year through five years	6,519,471		6,847,608		6,853,278		7,132,145
Due after five years through ten years	8,991,047		9,689,531		9,113,078		9,548,835
Due after ten years	9,820,871		12,096,231		9,803,968		11,190,478
Asset and mortgage-backed securities	4,038,189		4,169,299		3,932,442		3,973,805
Total	$	30,097,896	$	33,536,419	$	30,540,567	$	32,694,793


	Less than 12 months				12 months or greater				Total				Less than 12 months				12 months or greater				Total
			Gross				Gross				Gross				Gross				Gross				Gross
December 31, 2015:	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
March 31, 2017:													Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investment grade securities:
Corporate securities	$	6,388,148	$	323,961	$	294,755	$	40,861	$	6,682,903	$	364,822	$	3,658,776	$	89,271	$	412,413	$	33,285	$	4,071,189	$	122,556
Canadian and Canadian provincial governments	122,746		2,532		—		—		122,746		2,532		137,014		3,457		—		—		137,014		3,457
Residential mortgage-backed securities	452,297		7,036		82,314		4,057		534,611		11,093		467,812		9,394		101,886		2,277		569,698		11,671
Asset-backed securities	581,701		9,825		199,298		7,100		780,999		16,925		381,219		4,213		270,456		8,248		651,675		12,461
Commercial mortgage-backed securities	514,877		9,806		31,177		997		546,054		10,803		370,152		6,816		7,398		111		377,550		6,927
U.S. government and agencies	1,010,387		57,718		—		—		1,010,387		57,718		1,122,884		55,334		—		—		1,122,884		55,334
State and political subdivisions	157,837		5,349		13,016		3,718		170,853		9,067		155,720		7,963		13,086		3,604		168,806		11,567
Other foreign government, supranational and foreign government-sponsored enterprises	702,962		18,279		38,379		4,206		741,341		22,485		432,726		9,041		40,431		1,985		473,157		11,026
Total investment grade securities	9,930,955		434,506		658,939		60,939		10,589,894		495,445		6,726,303		185,489		845,670		49,510		7,571,973		234,999
Below investment grade securities:
Corporate securities	554,688		71,171		114,427		31,076		669,115		102,247		195,427		3,023		110,909		31,844		306,336		34,867
Residential mortgage-backed securities	22,646		282		7,679		298		30,325		580		—		—		122		5		122		5
Asset-backed securities	6,772		201		9,335		1,250		16,107		1,451		—		—		11,463		680		11,463		680
Commercial mortgage-backed securities	3,253		248		767		117		4,020		365		1,891		108		—		—		1,891		108
Other foreign government, supranational and foreign government-sponsored enterprises	60,668		7,356		31,693		11,803		92,361		19,159		9,704		84		14,163		457		23,867		541
Total below investment grade securities	648,027		79,258		163,901		44,544		811,928		123,802		207,022		3,215		136,657		32,986		343,679		36,201
Total fixed maturity securities	$	10,578,982	$	513,764	$	822,840	$	105,483	$	11,401,822	$	619,247	$	6,933,325	$	188,704	$	982,327	$	82,496	$	7,915,652	$	271,200
Non-redeemable preferred stock	$	12,331	$	2,175	$	12,191	$	3,787	$	24,522	$	5,962	$	—	$	—	$	24,289	$	2,801	$	24,289	$	2,801
Other equity securities	38,327		2,242		—		—		38,327		2,242		70,591		3,604		—		—		70,591		3,604
Total equity securities	$	50,658	$	4,417	$	12,191	$	3,787	$	62,849	$	8,204	$	70,591	$	3,604	$	24,289	$	2,801	$	94,880	$	6,405



	September 30, 2016
	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Securities lending transactions:
Corporate securities	$	—	$	—	$	—	$	62,104	$	62,104
Total	—		—		—		62,104		62,104
Repurchase transactions:
Corporate securities	—		3,906		5,239		133,551		142,696
Residential mortgage-backed securities	—		—		—		98,884		98,884
U.S. government and agencies	—		—		30,011		181,754		211,765
Foreign government	—		—		—		15,941		15,941
Other	6,534		—		—		—		6,534
Total	6,534		3,906		35,250		430,130		475,820
Total transactions	$	6,534	$	3,906	$	35,250	$	492,234	$	537,924

Gross amount of recognized liabilities for securities lending and repurchase transactions in preceding table									$	579,052
Amounts related to agreements not included in offsetting disclosure									$	41,128



	September 30, 2016				December 31, 2015
Internal credit quality grade:	Recorded Investment		% of Total		Recorded Investment		% of Total
High investment grade	$	2,097,202	58.0	%	$	1,621,601	51.7	%
Investment grade	1,430,439		39.6		1,397,996		44.6
Average	44,097		1.2		87,196		2.8
Watch list	35,794		1.0		13,550		0.4
In or near default	6,914		0.2		16,421		0.5
Total	$	3,614,446	100.0	%	$	3,136,764	100.0	%



	Recorded Investment
	Debt Service Ratios
	>1.20x		1.00x - 1.20x		<1.00x		Total		% of Total
March 31, 2017:
Loan-to-Value Ratio
0% - 59.99%	$	1,967,449	$	64,541	$	1,183	$	2,033,173	52.3	%
60% - 69.99%	1,259,650		34,584		—		1,294,234		33.4
70% - 79.99%	368,504		20,734		24,207		413,445		10.7
Greater than 80%	103,896		—		35,021		138,917		3.6
Total	$	3,699,499	$	119,859	$	60,411	$	3,879,769	100.0	%


	Unpaid Principal Balance		Recorded Investment		Related Allowance		Carrying Value			Unpaid Principal Balance		Recorded Investment		Related Allowance		Carrying Value
September 30, 2016:
March 31, 2017:
Impaired mortgage loans with no valuation allowance recorded	$	7,416	$	6,913	$	—	$	6,913		$	2,641	$	2,099	$	—	$	2,099
Impaired mortgage loans with valuation allowance recorded	—		—		—		—			—		—		—		—
Total impaired mortgage loans	$	7,416	$	6,913	$	—	$	6,913		$	2,641	$	2,099	$	—	$	2,099
December 31, 2015:
December 31, 2016:
Impaired mortgage loans with no valuation allowance recorded	$	4,033	$	4,033	$	—	$	4,033		$	2,758	$	2,216	$	—	$	2,216
Impaired mortgage loans with valuation allowance recorded	12,898		12,388		588		11,800			—		—		—		—
Total impaired mortgage loans	$	16,931	$	16,421	$	588	$	15,833		$	2,758	$	2,216	$	—	$	2,216

The Company’s average investment in impaired mortgage loans and the related interest income are reflected in the table below for the periods indicated (dollars in thousands):
The Company’s average investment balance of impaired mortgage loans and the related interest income are reflected in the table below for the periods indicated (dollars in thousands):									The Company’s average investment balance of impaired mortgage loans and the related interest income are reflected in the table below for the periods indicated (dollars in thousands):
	Three months ended September 30,									Three months ended March 31,
	2016				2015					2017				2016
	Average Recorded Investment⁽¹⁾		Interest Income		Average Recorded Investment⁽¹⁾		Interest Income			Average Recorded Investment⁽¹⁾		Interest Income		Average Recorded Investment⁽¹⁾		Interest Income
Impaired mortgage loans with no valuation allowance recorded	$	6,953	$	107	$	6,364	$	71		$	2,157	$	33	$	2,421	$	12
Impaired mortgage loans with valuation allowance recorded	—		—		12,495		194			—		—		10,918		144
Total impaired mortgage loans	$	6,953	$	107	$	18,859	$	265		$	2,157	$	33	$	13,339	$	156

	Nine months ended September 30,
	2016				2015
	Average Recorded Investment⁽¹⁾		Interest Income		Average Recorded Investment⁽¹⁾		Interest Income
Impaired mortgage loans with no valuation allowance recorded	$	4,687	$	324	$	6,533	$	212
Impaired mortgage loans with valuation allowance recorded	5,459		—		11,392		578
Total impaired mortgage loans	$	10,146	$	324	$	17,925	$	790


								Gross Amounts Not Offset in the Balance Sheet																Gross Amounts Not Offset in the Balance Sheet
	Gross Amounts Recognized		Gross Amounts Offset in the Balance Sheet			Net Amounts Presented in the Balance Sheet		Financial Instruments ⁽¹⁾			Cash Collateral Pledged/ Received			Net Amount			Gross Amounts Recognized		Gross Amounts Offset in the Balance Sheet			Net Amounts Presented in the Balance Sheet		Financial Instruments ⁽¹⁾			Cash Collateral Pledged/ Received			Net Amount
September 30, 2016:
March 31, 2017:
Derivative assets	$	363,772	$	(26,575	)	$	337,197	$	(48,024	)	$	(305,658	)	$	(16,485	)	$	222,427	$	(23,074	)	$	199,353	$	(18,439	)	$	(194,125	)	$	(13,211	)
Derivative liabilities	52,023		(26,575		)	25,448		(74,680		)	(20,078		)	(69,310		)	34,395		(23,074		)	11,321		(76,173		)	(1,111		)	(65,963		)
December 31, 2015:
December 31, 2016:
Derivative assets	$	301,270	$	(30,096	)	$	271,174	$	(20,888	)	$	(245,038	)	$	5,248		$	283,094	$	(27,028	)	$	256,066	$	(16,913	)	$	(254,498	)	$	(15,345	)
Derivative liabilities	54,921		(30,096		)	24,825		(47,149		)	(12,540		)	(34,864		)	48,571		(27,028		)	21,543		(95,863		)	(1,441		)	(75,761		)


(1)	Includes initial margin posted to a central clearing partner.


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), net			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, 2016:
For the three months ended March 31, 2017:									For the three months ended March 31, 2017:
Foreign currency swaps	Foreign-denominated fixed maturity securities	$	3,205	$	(3,205	)	$	—		Foreign-denominated fixed maturity securities	$	6,536	$	(6,536	)	$	—
For the nine months ended September 30, 2016:
For the three months ended March 31, 2016:									For the three months ended March 31, 2016:
Foreign currency swaps	Foreign-denominated fixed maturity securities	$	5,317	$	(5,317	)	$	—		Foreign-denominated fixed maturity securities	$	5,867	$	(5,867	)	$	—


	Effective Portion										Effective Portion
Derivative Type	Gain (Loss) Recognized in OCI			Gain (Loss) Reclassified into Income from OCI							Gain (Loss) Deferred in AOCI		Gain (Loss) Reclassified into Income from AOCI
				Investment Related Gains (Losses), net			Investment Income						Investment Related Gains (Losses)		Investment Income
For the three months ended September 30, 2016:
Interest rate swaps	$	932		$	—		$	200
For the three months ended March 31, 2017:										For the three months ended March 31, 2017:
Interest rate											$	2,216	$	—	$	—
Currency/Interest rate											8,217		—		197
Forward bond purchase commitments	—			116			21				—		—		50
Total	$	932		$	116		$	221			$	10,433	$	—	$	247
For the three months ended September 30, 2015:
Interest rate swaps	$	(13,199	)	$	—		$	(60	)
For the three months ended March 31, 2016:
Interest rate											$	5,129	$	—	$	—
Currency/Interest rate											3,422		—		160
Forward bond purchase commitments	—			179			(52		)		—		841		(53		)
Total	$	(13,199	)	$	179		$	(112	)		$	8,551	$	841	$	107

For the nine months ended September 30, 2016:
Interest rate swaps	$	(10,866	)	$	—		$	454
Forward bond purchase commitments	—			(53		)	(67		)
Total	$	(10,866	)	$	(53	)	$	387
For the nine months ended September 30, 2015:
Interest rate swaps	$	(18,349	)	$	—		$	231
Forward bond purchase commitments	14,098			834			260
Total	$	(4,251	)	$	834		$	491


	Derivative Gains (Losses) Deferred in AOCI									Derivative Gains (Losses) Deferred in AOCI
	For the three months ended September 30,				For the nine months ended September 30,					For the three months ended March 31,
Type of NIFO Hedge ^{(1) (2)}	2016		2015		2016			2015		2017			2016
Foreign currency swaps	$	8,341	$	42,702	$	(23,151	)	$	79,723	$	(7,606	)	$	(31,794	)


(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.


		Gain (Loss) for the three months ended September 30,							Gain (Loss) for the three months ended March 31,
Type of Non-hedging Derivative	Income Statement Location of Gain (Loss)	2016			2015			Income Statement Location of Gain (Loss)	2017			2016
Interest rate swaps	Investment related gains (losses), net	$	4,122		$	42,014		Investment related gains (losses), net	$	(2,612	)	$	62,527
Financial futures	Investment related gains (losses), net	(11,677		)	16,654			Investment related gains (losses), net	(12,775		)	(11,051		)
Foreign currency forwards	Investment related gains (losses), net	507			708			Investment related gains (losses), net	904			2,500
CPI swaps	Investment related gains (losses), net	76			(250		)	Investment related gains (losses), net	(5		)	(180		)
Credit default swaps	Investment related gains (losses), net	6,672			(8,407		)	Investment related gains (losses), net	7,358			3,346
Equity options	Investment related gains (losses), net	(13,648		)	15,150			Investment related gains (losses), net	(17,189		)	(2,703		)
Longevity swaps	Other revenues	8,921			2,404			Other revenues	1,865			87
Mortality swaps	Other revenues	(400		)	(442		)	Other revenues	(395		)	(424		)
Subtotal		(5,427		)	67,831				(22,849		)	54,102
Embedded derivatives in:
Modified coinsurance or funds withheld arrangements	Investment related gains (losses), net	49,078			(46,169		)	Investment related gains (losses), net	68,702			(92,250		)
Indexed annuity products	Interest credited	(20,104		)	50,246			Interest credited	(16,402		)	1,394
Variable annuity products	Investment related gains (losses), net	7,988			(95,372		)	Investment related gains (losses), net	22,363			(62,940		)
Total non-hedging derivatives		$	31,535		$	(23,464	)		$	51,814		$	(99,694	)

		Gain (Loss) for the nine months ended September 30,
Type of Non-hedging Derivative	Income Statement Location of Gain (Loss)	2016			2015
Interest rate swaps	Investment related gains (losses), net	$	108,149		$	29,629
Interest rate options	Investment related gains (losses), net	—			3,275
Financial futures	Investment related gains (losses), net	(30,285		)	7,141
Foreign currency forwards	Investment related gains (losses), net	6,584			(946		)
CPI swaps	Investment related gains (losses), net	(624		)	(153		)
Credit default swaps	Investment related gains (losses), net	13,536			(5,936		)
Equity options	Investment related gains (losses), net	(19,576		)	4,477
Longevity swaps	Other revenues	11,402			6,136
Mortality swaps	Other revenues	222			(1,399		)
Subtotal		89,408			42,224
Embedded derivatives in:
Modified coinsurance or funds withheld arrangements	Investment related gains (losses), net	33,795			(71,592		)
Indexed annuity products	Interest credited	(20,730		)	28,999
Variable annuity products	Investment related gains (losses), net	(83,089		)	(69,628		)
Total non-hedging derivatives		$	19,384		$	(69,997	)


(1)	The rating agency designations are based on ratings from Standard and Poor’s (“S&P”).


(2)	Assumes the value of the referenced credit obligations is zero.


(3)	The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts.


(1)	Consists of receivable from counterparty, included in other assets.


(2)	Included in available-for-sale securities, primarily consists of U.S. Treasury and government agency securities.


(3)	Included in cash and cash equivalents, with obligation to return cash collateral recorded in other liabilities.


September 30, 2016:				Fair Value Measurements Using:
March 31, 2017:															Fair Value Measurements Using:
	Total			Level 1		Level 2			Level 3			Total			Level 1		Level 2			Level 3
Assets:
Fixed maturity securities – available-for-sale:
Corporate securities	$	20,164,848		$	302,603	$	18,606,341		$	1,255,904		$	20,161,453		$	426,837	$	18,470,691		$	1,263,925
Canadian and Canadian provincial governments	4,140,379			—		3,566,760			573,619			3,720,364			—		3,236,804			483,560
Residential mortgage-backed securities	1,311,692			—		1,120,999			190,693			1,303,877			—		1,160,447			143,430
Asset-backed securities	1,382,574			—		1,158,923			223,651			1,380,590			—		1,172,154			208,436
Commercial mortgage-backed securities	1,475,033			—		1,437,526			37,507			1,289,338			—		1,287,415			1,923
U.S. government and agencies	1,559,536			1,427,369		106,334			25,833			1,482,452			1,360,357		98,621			23,474
State and political subdivisions	617,849			—		580,086			37,763			595,457			—		561,599			33,858
Other foreign government supranational and foreign government-sponsored enterprises	2,884,508			326,297		2,544,785			13,426			2,761,262			313,644		2,435,274			12,344
Total fixed maturity securities – available-for-sale	33,536,419			2,056,269		29,121,754			2,358,396			32,694,793			2,100,838		28,423,005			2,170,950
Funds withheld at interest – embedded derivatives	(42,903		)	—		—			(42,903		)	46,173			—		—			46,173
Cash equivalents	423,457			378,980		44,477			—			367,562			367,562		—			—
Short-term investments	92,151			56,017		36,134			—			24,929			1,615		20,038			3,276
Other invested assets:
Non-redeemable preferred stock	52,852			39,735		13,117			—			31,215			31,215		—			—
Other equity securities	367,396			367,396		—			—			80,401			80,401		—			—
Derivatives:
Interest rate swaps	161,008			—		161,008			—			50,011			—		50,011			—
CPI swaps	(447		)	—		(447		)	—
Foreign currency forwards												139			—		139			—
Credit default swaps	7,429			—		7,429			—			5,128			—		5,128			—
Equity options	40,021			—		40,021			—			17,245			—		17,245			—
Foreign currency swaps	102,157			—		102,157			—			97,660			—		97,660			—
FVO contractholder-directed unit-linked investments	200,208			198,925		1,283			—			193,600			192,266		1,334			—
Other	37			37		—			—			8,192			8,192		—			—
Total other invested assets	930,661			606,093		324,568			—			483,591			312,074		171,517			—
Other assets - longevity swaps	27,029			—		—			27,029			29,170			—		—			29,170
Total	$	34,966,814		$	3,097,359	$	29,526,933		$	2,342,522		$	33,646,218		$	2,782,089	$	28,614,560		$	2,249,569
Liabilities:
Interest sensitive contract liabilities – embedded derivatives	$	1,130,124		$	—	$	—		$	1,130,124		$	972,930		$	—	$	—		$	972,930
Other liabilities:
Derivatives:
Interest rate swaps	28,012			—		28,012			—			14,702			—		14,702			—
Foreign currency forwards	2,560			—		2,560			—			3,377			—		3,377			—
CPI swaps												244			—		244			—
Credit default swaps	254			—		254			—			(665		)	—		(665		)	—
Equity options	(8,141		)	—		(8,141		)	—			(9,194		)	—		(9,194		)	—
Foreign currency swaps	695			—		695			—
Mortality swaps	2,068			—		—			2,068			2,857			—		—			2,857
Total	$	1,155,572		$	—	$	23,380		$	1,132,192		$	984,251		$	—	$	8,464		$	975,787


	Estimated Fair Value						Valuation Technique		Unobservable Inputs		Range (Weighted Average)					Estimated Fair Value					Valuation Technique		Unobservable Inputs		Range (Weighted Average)
	September 30, 2016			December 31, 2015					Unobservable Inputs	September 30, 2016			December 31, 2015		March 31, 2017			December 31, 2016				March 31, 2017			December 31, 2016
Assets:
Corporate securities	$	175,706		$	195,557		Valuation Technique	Market comparable securities		Liquidity premium		0-2% (1%)			0-2% (1%)		$158,772			$167,815	Valuation Technique		Unobservable Inputs	Market comparable securities		Liquidity premium	0-2% (1%)		0-2% (1%)
U.S. government and agencies	25,833			26,265			Market comparable securities		Liquidity premium		0-1% (1%)			0-1% (1%)		23,474			24,488		Market comparable securities		Liquidity premium		0-1% (1%)		0-1% (1%)
State and political subdivisions	5,011			4,770			Market comparable securities		Liquidity premium		1	%		1	%	4,653			4,670		Market comparable securities		Liquidity premium		1	%	1	%
Funds withheld at interest- embedded derivatives	(42,903		)	(76,698		)	Total return swap		Mortality		0-100% (2%)			0-100% (2%)		46,173			(22,529	)	Total return swap		Mortality		0-100% (2%)		0-100% (2%)
									Lapse		0-35% (8%)			0-35% (7%)									Lapse		0-35% (8%)		0-35% (8%)
									Withdrawal		0-5% (3%)			0-5% (3%)									Withdrawal		0-5% (3%)		0-5% (3%)
									CVA		0-5% (1%)			0-5% (1%)									CVA		0-5% (1%)		0-5% (1%)
									Crediting rate		2-4% (2%)			2-4% (3%)									Crediting rate		2-4% (2%)		2-4% (2%)
Longevity swaps	27,029			14,996			Discounted cash flow		Mortality		0-100% (2%)			0-100% (2%)		29,170			26,958		Discounted cash flow		Mortality		0-100% (2%)		0-100% (2%)
									Mortality improvement		(10%)-10% (3%)			(10%)-10% (3%)									Mortality improvement		(10%)-10% (3%)		(10%)-10% (3%)
Liabilities:
Interest sensitive contract liabilities- embedded derivatives- indexed annuities	854,564			878,114			Discounted cash flow		Mortality		0-100% (2%)			0-100% (2%)		810,657			805,672		Discounted cash flow		Mortality		0-100% (2%)		0-100% (2%)
									Lapse		0-35% (8%)			0-35% (7%)									Lapse		0-35% (8%)		0-35% (8%)
									Withdrawal		0-5% (3%)			0-5% (3%)									Withdrawal		0-5% (3%)		0-5% (3%)
									Option budget projection		2-4% (2%)			2-4% (3%)									Option budget projection		2-4% (2%)		2-4% (2%)

Interest sensitive contract liabilities- embedded derivatives- variable annuities	275,560			192,470			Discounted cash flow		Mortality		0-100% (2%)			0-100% (2%)		162,273			184,636		Discounted cash flow		Mortality		0-100% (2%)		0-100% (2%)
									Lapse		0-25% (6%)			0-25% (7%)									Lapse		0-25% (6%)		0-25% (6%)
									Withdrawal		0-7% (3%)			0-7% (3%)									Withdrawal		0-7% (3%)		0-7% (3%)
									CVA		0-5% (1%)			0-5% (1%)									CVA		0-5% (1%)		0-5% (1%)
									Long-term volatility		0-27% (14%)			0-27% (14%)									Long-term volatility		0-27% (9%)		0-27% (14%)
Mortality swaps	2,068			2,619			Discounted cash flow		Mortality		0-100% (1%)			0-100% (1%)		2,857			2,462		Discounted cash flow		Mortality		0-100% (1%)		0-100% (1%)