COLORADO
|
84-0467208
|
(State
of Incorporation)
|
(I.R.S.
Employer Identification Number)
|
PART
I
|
Page
|
|
Business
|
4
|
|
Risk
Factors
|
9
|
|
Unresolved
Staff Comments
|
11
|
|
Properties
|
12
|
|
Legal
Proceedings
|
12
|
|
Submission
of Matters to a Vote of Security Holders
|
12
|
|
PART
II
|
||
Market
for Registrant's Common Equity and Related Stockholder
Matters
|
13
|
|
Selected
Consolidated Financial Data
|
15
|
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
16
|
|
Quantitative
and Qualitative Disclosures About Market Risk
|
42
|
|
Financial
Statements and Supplementary Data
|
42
|
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
42
|
|
Controls
and Procedures
|
42
|
|
Other
Information
|
45
|
|
PART
III
|
||
Directors
and Executive Officers of the Registrant
|
45
|
|
Executive
Compensation
|
48
|
|
Security
Ownership of Certain Beneficial Owners and Management
|
65
|
|
Certain
Relationships and Related Transactions
|
67
|
|
Principal
Accountant Fees and Services
|
68
|
|
PART
IV
|
||
Exhibits
and Financial Statement Schedules
|
68
|
|
Signatures
|
129
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Annuities:
|
||||||||||
Single
premium deferred
|
$
|
8,216
|
10,389
|
8,156
|
||||||
Flexible
premium deferred
|
163,415
|
225,941
|
342,509
|
|||||||
Equity-indexed
deferred
|
303,613
|
298,227
|
512,709
|
|||||||
Single
premium immediate
|
10,750
|
23,383
|
28,653
|
|||||||
Total
annuities
|
485,994
|
557,940
|
892,027
|
|||||||
Universal
life insurance
|
146,742
|
133,579
|
119,554
|
|||||||
Traditional
life and other
|
18,046
|
16,629
|
15,830
|
|||||||
Total
direct premiums and deposits collected
|
$
|
650,782
|
708,148
|
1,027,411
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
United
States domestic products:
|
||||||||||
Annuities
|
$
|
475,867
|
548,967
|
882,530
|
||||||
Life
insurance
|
35,780
|
36,594
|
31,501
|
|||||||
Total
domestic products
|
511,647
|
585,561
|
914,031
|
|||||||
International
products:
|
||||||||||
Annuities
|
10,127
|
8,973
|
9,497
|
|||||||
Life
insurance
|
129,008
|
113,614
|
103,883
|
|||||||
Total
international products
|
139,135
|
122,587
|
113,380
|
|||||||
Total
direct premiums and deposits collected
|
$
|
650,782
|
708,148
|
1,027,411
|
Domestic
|
International
|
|||||||||||||||
Life
|
Life
|
All
|
||||||||||||||
Insurance
|
Insurance
|
Annuities
|
Others
|
Totals
|
||||||||||||
(In
thousands)
|
||||||||||||||||
Revenues,
excluding
|
||||||||||||||||
realized
gains (losses):
|
||||||||||||||||
2006
|
$
|
43,222
|
106,613
|
350,665
|
18,697
|
519,197
|
||||||||||
2005
|
42,165
|
93,577
|
277,889
|
17,528
|
431,159
|
|||||||||||
2004
|
44,116
|
87,850
|
283,827
|
14,847
|
430,640
|
|||||||||||
Segment
earnings:
(A)
|
||||||||||||||||
2006
|
$
|
297
|
12,191
|
56,559
|
5,566
|
74,613
|
||||||||||
2005
|
2,809
|
13,559
|
47,915
|
6,559
|
70,842
|
|||||||||||
2004
|
2,522
|
12,133
|
45,473
|
5,066
|
65,194
|
|||||||||||
Segment
assets: (B)
|
||||||||||||||||
2006
|
$
|
381,490
|
715,064
|
5,467,733
|
103,087
|
6,667,374
|
||||||||||
2005
|
366,939
|
631,477
|
5,256,146
|
94,064
|
6,348,626
|
|||||||||||
2004
|
361,176
|
568,723
|
4,960,837
|
84,481
|
5,975,217
|
Rating
Agency
|
Rating
|
Standard
& Poor's
|
A
(Strong)
|
A.M.
Best
|
A-
(Excellent)
|
High
|
Low
|
||||
2006:
|
First
Quarter
|
$
|
232.29
|
200.00
|
|
|
Second
Quarter
|
239.65
|
209.00
|
||
|
Third
Quarter
|
237.36
|
222.59
|
||
|
Fourth
Quarter
|
243.00
|
224.05
|
||
|
|||||
2005:
|
First
Quarter
|
$
|
175.85
|
166.63
|
|
|
Second
Quarter
|
197.99
|
160.00
|
||
|
Third
Quarter
|
213.70
|
194.69
|
||
|
Fourth
Quarter
|
220.00
|
181.95
|
Class
A Common Stock
|
4,635
|
||
Class
B Common Stock
|
2
|
Years
Ended December 31,
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
(In
thousands except per share amounts)
|
||||||||||||||||
Earnings
Information:
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Life
and annuity premiums
|
$
|
15,805
|
14,602
|
14,025
|
13,916
|
13,918
|
||||||||||
Universal
life and annuity contract
|
||||||||||||||||
revenues
|
106,320
|
96,765
|
89,513
|
80,964
|
76,173
|
|||||||||||
Net
investment income
|
379,768
|
310,213
|
315,843
|
298,974
|
236,714
|
|||||||||||
Other
income
|
17,304
|
9,579
|
11,259
|
7,061
|
6,726
|
|||||||||||
Realized
gains (losses) on
|
||||||||||||||||
investments
|
2,662
|
9,884
|
3,506
|
(1,647
|
)
|
(16,144
|
)
|
|||||||||
Total
revenues
|
521,859
|
441,043
|
434,146
|
399,268
|
317,387
|
|||||||||||
Benefits
and expenses:
|
||||||||||||||||
Life
and other policy benefits
|
35,241
|
39,162
|
34,613
|
37,180
|
31,299
|
|||||||||||
Amortization
of deferred policy
|
||||||||||||||||
acquisition
costs
|
90,358
|
87,955
|
88,733
|
53,829
|
35,799
|
|||||||||||
Universal
life and investment
|
||||||||||||||||
annuity
contract interest
|
213,736
|
150,692
|
173,315
|
176,374
|
150,479
|
|||||||||||
Other
operating expenses
|
65,709
|
46,349
|
35,441
|
48,776
|
36,938
|
|||||||||||
Total
expenses
|
405,044
|
324,158
|
332,102
|
316,159
|
254,515
|
|||||||||||
Earnings
before Federal income taxes
|
||||||||||||||||
and
cumulative effect of change in
|
||||||||||||||||
accounting
principle
|
116,815
|
116,885
|
102,044
|
83,109
|
62,872
|
|||||||||||
Federal
income taxes
|
40,472
|
39,618
|
34,572
|
27,327
|
20,806
|
|||||||||||
Earnings
before cumulative effect of
|
||||||||||||||||
change
in accounting principle
|
76,343
|
77,267
|
67,472
|
55,782
|
42,066
|
|||||||||||
Cumulative
effect or change in
|
||||||||||||||||
accounting
principle, net of tax
|
-
|
-
|
54,697
|
-
|
-
|
|||||||||||
Net
earnings
|
$
|
76,343
|
77,267
|
122,169
|
55,782
|
42,066
|
||||||||||
Diluted
Earnings Per Share:
|
||||||||||||||||
Earnings
from operations
|
$
|
20.88
|
21.24
|
18.73
|
15.64
|
11.84
|
||||||||||
Cumulative
effect of change in
|
||||||||||||||||
accounting
principle
|
-
|
-
|
15.18
|
-
|
-
|
|||||||||||
Net
earnings
|
$
|
20.88
|
21.24
|
33.91
|
15.64
|
11.84
|
||||||||||
Balance
Sheet Information:
|
||||||||||||||||
Total
assets
|
$
|
6,693,443
|
6,369,008
|
5,991,685
|
5,297,720
|
4,137,247
|
||||||||||
Total
liabilities
|
$
|
5,760,459
|
5,495,000
|
5,183,013
|
4,617,862
|
3,530,041
|
||||||||||
Stockholders’
equity
|
$
|
932,984
|
874,008
|
808,672
|
679,858
|
607,206
|
||||||||||
Book
value per common share
|
$
|
257.67
|
241.89
|
225.62
|
191.69
|
172.26
|
Ÿ |
level
of premium revenues collected
|
Ÿ |
persistency
of policies and contracts
|
Ÿ |
returns
on investments
|
Ÿ |
investment
credit quality
|
Ÿ |
levels
of policy benefits and costs to acquire
business
|
Ÿ |
effect
of interest rate changes on revenues and investments including asset
and
liability matching
|
Ÿ |
adequate
levels of capital and surplus
|
Ÿ |
exercise
price
|
Ÿ |
expected
term based on contractual term and perceived future behavior relative
to
exercise
|
Ÿ |
current
price
|
Ÿ |
expected
volatility
|
Ÿ |
risk-free
interest rates
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Universal
life and annuity contract revenues
|
$
|
106,320
|
96,765
|
89,513
|
||||||
Traditional
life and annuity premiums
|
15,805
|
14,602
|
14,025
|
|||||||
Net
investment income (excluding derivatives)
|
336,489
|
321,201
|
303,855
|
|||||||
Other
income
|
17,304
|
9,579
|
11,259
|
|||||||
Operating
revenues
|
475,918
|
442,147
|
418,652
|
|||||||
Derivative
income (loss)
|
43,279
|
(10,988
|
)
|
11,988
|
||||||
Realized
gains on investments
|
2,662
|
9,884
|
3,506
|
|||||||
Total
revenues
|
$
|
521,859
|
441,043
|
434,146
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Gross
investment income:
|
||||||||||
Debt
securities
|
$
|
306,129
|
293,502
|
276,624
|
||||||
Mortgage
loans
|
8,480
|
9,676
|
12,510
|
|||||||
Policy
loans
|
6,354
|
6,409
|
6,483
|
|||||||
Other
investment income
|
18,407
|
13,975
|
10,351
|
|||||||
Total
investment income
|
339,370
|
323,562
|
305,968
|
|||||||
Investment
expenses
|
2,881
|
2,361
|
2,113
|
|||||||
Net
investment income
|
||||||||||
(excluding
derivatives)
|
336,489
|
321,201
|
303,855
|
|||||||
Derivative
income (loss)
|
43,279
|
(10,988
|
)
|
11,988
|
||||||
Net
investment income
|
$
|
379,768
|
310,213
|
315,843
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands except percentages)
|
||||||||||
Excluding
derivatives:
|
||||||||||
Net
investment income
|
$
|
336,489
|
321,201
|
303,855
|
||||||
Average
invested assets, at amortized cost
|
$
|
5,514,196
|
5,205,983
|
4,693,661
|
||||||
Yield
on average invested assets
|
6.10
|
%
|
6.17
|
%
|
6.47
|
%
|
||||
Including
derivatives:
|
||||||||||
Net
investment income
|
$
|
379,768
|
310,213
|
315,843
|
||||||
Average
invested assets, at amortized cost
|
$
|
5,548,266
|
5,252,259
|
4,731,169
|
||||||
Yield
on average invested assets
|
6.84
|
%
|
5.91
|
%
|
6.68
|
%
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Derivatives:
|
||||||||||
Unrealized
income (loss)
|
$
|
27,108
|
(9,579
|
)
|
(13,262
|
)
|
||||
Realized
income (loss)
|
16,171
|
(1,409
|
)
|
25,250
|
||||||
Total
income (loss) included in net investment income
|
$
|
43,279
|
(10,988
|
)
|
11,988
|
|||||
Total
contract interest
|
$
|
213,736
|
150,962
|
173,315
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Impairment
or valuation writedowns:
|
||||||||||
Bonds
|
$
|
99
|
1,926
|
3,647
|
||||||
Mortgage
loans
|
2,100
|
-
|
632
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Life
and other policy benefits
|
$
|
35,241
|
39,162
|
34,613
|
||||||
Amortization
of deferred policy acquisition costs
|
90,358
|
87,955
|
88,733
|
|||||||
Universal
life and annuity contract interest
|
213,736
|
150,692
|
173,315
|
|||||||
Other
operating expenses
|
65,709
|
46,349
|
35,441
|
|||||||
Totals
|
$
|
405,044
|
324,158
|
332,102
|
December
31,
|
December
31,
|
||||||||||||||||||
2006
|
2005
|
2004
|
2006
|
2005
|
2004
|
||||||||||||||
(Excluding
equity-indexed products)
|
(Including
equity-indexed products)
|
||||||||||||||||||
Annuity
|
3.39
|
%
|
3.59
|
%
|
3.91
|
%
|
3.86
|
%
|
2.86
|
%
|
3.60
|
%
|
|||||||
Interest
sensitive life
|
4.30
|
%
|
4.94
|
%
|
4.75
|
%
|
5.41
|
%
|
4.63
|
%
|
4.97
|
%
|
Domestic
Life
Insurance
|
International
Life
Insurance
|
Annuities
|
All
Others
|
Totals
|
||||||||||||
(In
thousands)
|
||||||||||||||||
Segment
earnings:
|
||||||||||||||||
2006
|
$
|
297
|
12,191
|
56,559
|
5,566
|
74,613
|
||||||||||
2005
|
2,809
|
13,559
|
47,915
|
6,559
|
70,842
|
|||||||||||
2004
|
2,522
|
12,133
|
45,473
|
5,066
|
65,194
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Premiums
and other revenue:
|
||||||||||
Premiums
and contract revenues
|
$
|
22,731
|
22,172
|
23,324
|
||||||
Net
investment income
|
20,462
|
19,958
|
20,283
|
|||||||
Other
income
|
29
|
35
|
509
|
|||||||
Total
premiums and other revenue
|
43,222
|
42,165
|
44,116
|
|||||||
Benefits
and expenses:
|
||||||||||
Life
and other policy benefits
|
13,656
|
14,932
|
15,141
|
|||||||
Amortization
of deferred policy acquisition costs
|
7,313
|
5,798
|
9,098
|
|||||||
Universal
life insurance contract interest
|
9,168
|
8,842
|
8,585
|
|||||||
Other
operating expenses
|
12,630
|
8,349
|
7,479
|
|||||||
Total
benefits and expenses
|
42,767
|
37,921
|
40,303
|
|||||||
Segment
earnings before Federal income taxes
|
455
|
4,244
|
3,813
|
|||||||
Federal
income taxes
|
158
|
1,435
|
1,291
|
|||||||
Segment
earnings
|
$
|
297
|
2,809
|
2,522
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Universal
life insurance revenues
|
$
|
18,286
|
16,322
|
16,807
|
||||||
Traditional
life insurance premiums
|
6,906
|
7,392
|
7,638
|
|||||||
Reinsurance
premiums
|
(2,461
|
)
|
(1,542
|
)
|
(1,121
|
)
|
||||
Totals
|
$
|
22,731
|
22,172
|
23,324
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Universal
life insurance:
|
||||||||||
First
year and single premiums
|
$
|
14,640
|
14,973
|
9,382
|
||||||
Renewal
premiums
|
14,118
|
14,199
|
14,510
|
|||||||
Totals
|
$
|
28,758
|
29,172
|
23,892
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Premiums
and other revenue:
|
||||||||||
Premiums
and contract revenues
|
$
|
78,005
|
70,379
|
64,239
|
||||||
Net
investment income
|
28,530
|
23,123
|
22,821
|
|||||||
Other
income
|
78
|
75
|
790
|
|||||||
Total
premiums and other revenue
|
106,613
|
93,577
|
87,850
|
|||||||
Benefits
and expenses:
|
||||||||||
Life
and other policy benefits
|
18,161
|
21,232
|
16,626
|
|||||||
Amortization
of deferred policy acquisition costs
|
23,075
|
20,389
|
21,837
|
|||||||
Universal
life insurance contract interest
|
25,675
|
18,118
|
18,631
|
|||||||
Other
operating expense
|
21,051
|
13,359
|
12,418
|
|||||||
Total
benefits and expenses
|
87,962
|
73,098
|
69,512
|
|||||||
Segment
earnings before Federal income taxes
|
18,651
|
20,479
|
18,338
|
|||||||
Federal
income taxes
|
6,460
|
6,920
|
6,205
|
|||||||
Segment
earnings
|
$
|
12,191
|
13,559
|
12,133
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Universal
life insurance revenues
|
$
|
78,008
|
72,010
|
67,059
|
||||||
Traditional
life insurance premiums
|
11,027
|
9,201
|
8,228
|
|||||||
Reinsurance
premiums
|
(11,030
|
)
|
(10,832
|
)
|
(11,048
|
)
|
||||
Totals
|
$
|
78,005
|
70,379
|
64,239
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Universal
life insurance
|
||||||||||
First
year and single premiums
|
$
|
36,758
|
35,575
|
35,681
|
||||||
Renewal
premiums
|
81,226
|
68,832
|
59,981
|
|||||||
Totals
|
$
|
117,984
|
104,407
|
95,662
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Net
investment income
|
||||||||||
(excluding
derivatives)
|
$
|
25,893
|
23,896
|
23,260
|
||||||
Derivative
income (loss)
|
2,637
|
(773
|
)
|
(439
|
)
|
|||||
Net
investment income
|
$
|
28,530
|
23,123
|
22,821
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Premiums
and other revenue:
|
||||||||||
Premiums
and contract revenues
|
$
|
21,389
|
18,816
|
15,975
|
||||||
Net
investment income
|
323,326
|
258,485
|
266,151
|
|||||||
Other
income
|
5,950
|
588
|
1,701
|
|||||||
Total
premiums and other revenue
|
350,665
|
277,889
|
283,827
|
|||||||
Benefits
and expenses:
|
||||||||||
Life
and other policy benefits
|
3,424
|
2,998
|
2,846
|
|||||||
Amortization
of deferred policy acquisition costs
|
59,970
|
61,768
|
57,798
|
|||||||
Annuity
contract interest
|
178,893
|
123,732
|
146,099
|
|||||||
Other
operating expenses
|
21,847
|
17,019
|
8,353
|
|||||||
Total
benefits and expenses
|
264,134
|
205,517
|
215,096
|
|||||||
Segment
earnings before Federal income taxes
|
86,531
|
72,372
|
68,731
|
|||||||
Federal
income taxes
|
29,972
|
24,457
|
23,258
|
|||||||
Segment
earnings
|
$
|
56,559
|
47,915
|
45,473
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Surrender
charges
|
$
|
17,260
|
15,271
|
13,031
|
||||||
Payout
annuity and other revenues
|
4,098
|
3,511
|
2,906
|
|||||||
Traditional
annuity premiums
|
31
|
34
|
38
|
|||||||
Totals
|
$
|
21,389
|
18,816
|
15,975
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Equity-indexed
annuities
|
$
|
303,613
|
298,227
|
512,709
|
||||||
Other
deferred annuities
|
171,631
|
236,330
|
350,665
|
|||||||
Immediate
annuities
|
10,750
|
23,383
|
28,653
|
|||||||
Totals
|
$
|
485,994
|
557,940
|
892,027
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Net
investment income
|
||||||||||
(excluding
derivatives)
|
$
|
282,684
|
268,700
|
253,724
|
||||||
Derivative
income (loss)
|
40,642
|
(10,215
|
)
|
12,427
|
||||||
Net
investment income
|
$
|
323,326
|
258,485
|
266,151
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Equity-indexed
annuities
|
$
|
88,094
|
28,224
|
38,942
|
||||||
All
other annuities
|
101,619
|
110,165
|
129,392
|
|||||||
Gross
contract interest
|
189,713
|
138,389
|
168,334
|
|||||||
Bonus
interest deferred and capitalized
|
(19,700
|
)
|
(21,200
|
)
|
(27,491
|
)
|
||||
Bonus
interest amortization
|
8,880
|
6,543
|
5,256
|
|||||||
Total
contract interest
|
$
|
178,893
|
123,732
|
146,099
|
2006
|
2005
|
||||||||||||
Carrying
|
Carrying
|
||||||||||||
Value
|
%
|
Value
|
%
|
||||||||||
(In
thousands)
|
(In
thousands)
|
||||||||||||
Debt
securities
|
$
|
5,484,799
|
94.7
|
$
|
5,249,156
|
94.8
|
|||||||
Mortgage
loans
|
103,325
|
1.8
|
110,639
|
2.0
|
|||||||||
Policy
loans
|
86,856
|
1.5
|
86,385
|
1.6
|
|||||||||
Derivatives
|
72,012
|
1.2
|
39,405
|
0.7
|
|||||||||
Equity
securities
|
21,203
|
0.4
|
20,295
|
0.4
|
|||||||||
Real
estate
|
12,113
|
0.2
|
13,436
|
0.2
|
|||||||||
Other
|
10,709
|
0.2
|
16,577
|
0.3
|
|||||||||
Totals
|
$
|
5,791,017
|
100.0
|
$
|
5,535,893
|
100.0
|
2006
|
2005
|
||||||||||||
Carrying
|
Carrying
|
||||||||||||
Value
|
%
|
Value
|
%
|
||||||||||
(In
thousands)
|
(In
thousands)
|
||||||||||||
Corporate
|
$
|
2,384,762
|
43.5
|
$
|
2,320,306
|
44.2
|
|||||||
Mortgage-backed
securities
|
1,817,532
|
33.1
|
1,715,245
|
32.7
|
|||||||||
Public
utilities
|
623,649
|
11.4
|
661,333
|
12.6
|
|||||||||
U.S.
government/agencies
|
447,573
|
8.2
|
306,260
|
5.8
|
|||||||||
Asset-backed
securities
|
122,101
|
2.2
|
161,324
|
3.1
|
|||||||||
States
& political subdivisions
|
58,627
|
1.1
|
53,940
|
1.0
|
|||||||||
Foreign
governments
|
30,555
|
0.5
|
30,748
|
0.6
|
|||||||||
Totals
|
$
|
5,484,799
|
100.0
|
$
|
5,249,156
|
100.0
|
2006
|
2005
|
||||||||||||
Carrying
|
Carrying
|
||||||||||||
Value
|
%
|
Value
|
%
|
||||||||||
(In
thousands)
|
(In
thousands)
|
||||||||||||
AAA
and U.S. government
|
$
|
2,485,122
|
45.3
|
$
|
2,285,094
|
43.5
|
|||||||
AA
|
284,965
|
5.2
|
202,092
|
3.9
|
|||||||||
A
|
1,330,980
|
24.3
|
1,360,716
|
25.9
|
|||||||||
BBB
|
1,237,151
|
22.5
|
1,230,799
|
23.5
|
|||||||||
BB
and other below investment grade
|
146,581
|
2.7
|
170,455
|
3.2
|
|||||||||
Totals
|
$
|
5,484,799
|
100.0
|
$
|
5,249,156
|
100.0
|
Below
Investment Grade Debt Securities
|
|||||||||||||
%
of
|
|||||||||||||
Amortized
|
Carrying
|
Fair
|
Invested
|
||||||||||
Cost
|
Value
|
Value
|
Assets
|
||||||||||
(In
thousands except percentages)
|
|||||||||||||
December
31, 2006
|
$
|
145,858
|
146,581
|
146,170
|
2.5
|
%
|
|||||||
December
31, 2005
|
$
|
168,423
|
170,455
|
167,770
|
3.1
|
%
|
Below
Investment Grade Debt Securities
|
|||||||||||||
Amortized
|
Carrying
|