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NET INVESTMENT INCOME - INSURANCE
 6 Months Ended
Jun. 30, 2022
Investments, All Other Investments [Abstract]  
NET INVESTMENT INCOME - INSURANCE NET INVESTMENT INCOME - INSURANCE
Net investment income for Global Atlantic is comprised primarily of interest income, including amortization of premiums and accretion of discounts, based on yields that change due to expectations in projected cash flows, dividend income from common and preferred stock, earnings from investments accounted for under equity method accounting, and lease income on other investments.

The components of net investment income were as follows:

Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Fixed maturity securities – interest and other income$745,346 $528,523 $1,436,639 $880,063 
Mortgage and other loan receivables373,563 246,951 697,704 369,417 
Investments in transportation and other leased assets66,714 52,944 134,393 89,687 
Investments in renewable energy44,419 33,136 69,637 33,932 
Investments in real estate29,954 4,443 33,857 5,527 
Short-term and other investment income29,800 13,606 50,497 18,719 
Income assumed from funds withheld receivable at interest23,497 19,640 43,102 33,113 
Policy loans7,055 17,088 14,966 18,935 
Equity securities – dividends and other income— (257)— (741)
Income ceded to funds withheld payable at interest(238,761)(83,699)(418,463)(113,538)
Gross investment income1,081,587 832,375 2,062,332 1,335,114 
Less investment expenses:
Investment management and administration95,656 67,723 208,787 101,669 
Transportation and renewable energy asset depreciation and maintenance48,856 46,909 102,809 70,418 
Interest expense on derivative collateral and repurchase agreements5,186 1,246 6,242 1,749 
Net investment income$931,889 $716,497 $1,744,494 $1,161,278 
NET INVESTMENT-RELATED GAINS (LOSSES) - INSURANCE
Net investment-related gains (losses) from insurance operations primarily consists of (i) realized gains and (losses) from the disposal of investments, (ii) unrealized gains and (losses) from investments held for trading, equity securities, real estate investments accounted for under investment company accounting, and investments with fair value remeasurements recognized in earnings as a result of the election of a fair-value option, (iii) unrealized gains and (losses) on funds withheld at interest, (iv) unrealized gains and (losses) from derivatives not designated in an hedging relationship, and (v) allowances for credit losses, and other impairments of investments.

Net investment-related gains (losses) were as follows:

Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Realized gains (losses) on equity investments$— $22,882 $— $25,125 
Realized gains (losses) on available-for-sale fixed maturity debt securities(287,373)(27,634)(530,723)(73,274)
Credit loss allowances on available-for-sale securities(6,442)46,447 (17,044)25,096 
Credit loss allowances on mortgage and other loan receivables(12,298)2,337 (38,383)(181,304)
Allowances on unfunded commitments(10,168)2,914 (3,378)(11,695)
Unrealized gains (losses) on fixed maturity securities classified as trading(989,678)319,942 (2,028,124)2,890 
Unrealized gains (losses) on investments recognized under the fair-value option(38,435)59,587 (40,928)47,421 
Unrealized gains (losses) on real estate investments recognized at fair value under investment company accounting45,396 10,267 123,088 10,267 
Net gains (losses) on derivative instruments855,366 (119,226)1,715,100 29,306 
Realized gains (losses) on funds withheld at interest, payable portfolio28,727 (11,734)2,340 (19,112)
Realized gains (losses) on funds withheld at interest, receivable portfolio(22,162)7,263 3,438 7,617 
Other realized gains (losses)10,741 13,513 19,608 8,519 
Net investment-related gains (losses)$(426,326)$326,558 $(795,006)$(129,144)
Allowance for credit losses

Available-for-sale fixed maturity securities

The table below presents a roll-forward of the allowance for credit losses recognized for fixed maturity securities held by Global Atlantic:

Three Months Ended June 30, 2022Six Months Ended June 30, 2022
CorporateStructuredTotalCorporateStructuredTotal
Balance, as of beginning of period$5,000 $91,908 $96,908 $3,238 $84,895 $88,133 
Initial impairments for credit losses recognized on securities not previously impaired— 20,197 20,197 122 35,955 36,077 
Initial credit loss allowance recognized on purchased credit deteriorated ("PCD") securities— 567 567 — 707 707 
Accretion of initial credit loss allowance on PCD securities— 391 391 — 868 868 
Reductions due to sales (or maturities, pay downs or prepayments) during the period of securities previously identified as credit impaired— (2,015)(2,015)— (4,459)(4,459)
Net additions / reductions for securities previously impaired2,842 (16,597)(13,755)4,482 (23,515)(19,033)
Balance, as of end of period$7,842 $94,451 $102,293 $7,842 $94,451 $102,293 

Three Months Ended June 30, 2021Six Months Ended June 30, 2021
CorporateStructuredTotalCorporateStructuredTotal
Balance, as of beginning of period(1)
$— $140,252 $140,252 $— $120,895 $120,895 
Initial impairments for credit losses recognized on securities not previously impaired— 186 186 — 27,609 27,609 
Initial credit loss allowance recognized on purchased credit deteriorated ("PCD") securities— 5,406 5,406 — 5,628 5,628 
Accretion of initial credit loss allowance on PCD securities— — — — 321 321 
Reductions due to sales (or maturities, pay downs or prepayments) during the period of securities previously identified as credit impaired— (7,565)(7,565)— (10,102)(10,102)
Net additions / reductions for securities previously impaired— (46,633)(46,633)— (52,705)(52,705)
Balance, as of end of period$— $91,646 $91,646 $— $91,646 $91,646 

(1)Includes securities designated as purchased credit impaired as of the time of the acquisition of Global Atlantic.

Mortgage and other loan receivables

Changes in the allowance for credit losses on mortgage and other loan receivables held by Global Atlantic are summarized below:

Three Months Ended June 30, 2022Six Months Ended June 30, 2022
Commercial Mortgage LoansResidential Mortgage LoansConsumer and Other Loan ReceivablesTotalCommercial Mortgage LoansResidential Mortgage LoansConsumer and Other Loan ReceivablesTotal
Balance, as of beginning of period$81,536 $87,583 $231,043 $400,162 $65,970 $72,082 $236,025 $374,077 
Net provision (release)22,408 8,611 (18,721)12,298 37,974 24,112 (23,703)38,383 
Charge-offs— — (575)(575)— — (575)(575)
Balance, as of end of period$103,944 $96,194 $211,747 $411,885 $103,944 $96,194 $211,747 $411,885 
Three Months Ended June 30, 2021Six Months Ended June 30, 2021
Commercial Mortgage LoansResidential Mortgage LoansConsumer and Other Loan ReceivablesTotalCommercial Mortgage LoansResidential Mortgage LoansConsumer and Other Loan ReceivablesTotal
Balance, as of beginning of period (1)
$80,056 $78,739 $145,105 $303,900 $58,203 $62,056 $— $120,259 
Net provision (release)(21,801)(3,002)22,466 (2,337)52 13,681 167,571 181,304 
Loans purchased with credit deterioration— 799 838 1,637 — 799 838 1,637 
Charge-offs— — (5,274)(5,274)— — (5,274)(5,274)
Balance, as of end of period$58,255 $76,536 $163,135 $297,926 $58,255 $76,536 $163,135 $297,926 

(1) Includes loans designated as purchased credit deteriorated as of the time of the acquisition of Global Atlantic.

Proceeds and gross gains and losses from voluntary sales

The proceeds from voluntary sales and the gross gains and losses on those sales of available-for-sale ("AFS") fixed maturity securities were as follows:

Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
AFS fixed maturity securities:
Proceeds from voluntary sales$3,933,957 $3,423,122 $10,062,242 $5,326,242 
Gross gains1,254 16,469 10,196 21,245 
Gross losses(286,576)(22,132)(532,447)(73,104)
INSURANCE INTANGIBLES, UNEARNED REVENUE RESERVES AND UNEARNED FRONT-END LOADS
The following reflects the changes to the deferred policy acquisition costs ("DAC") asset:

Six Months Ended June 30,
20222021
Balance, as of beginning of period
$447,886 $— 
Acquisition/reinsurance— 1,271 
Deferrals244,180 202,037 
Amortized to expense during the period(1)
(40,781)(5,331)
Adjustment for unrealized investment-related losses (gains) during the period(27,409)1,892 
Balance, as of end of period$623,876 $199,869 

(1)     These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations.

The following reflects the changes to the value of business acquired ("VOBA") asset:

Six Months Ended June 30,
20222021
Balance, as of beginning of period
$959,263 $1,024,520 
Amortized to expense during the period(1)
(34,232)(30,247)
Balance, as of end of period$925,031 $994,273 

(1)     These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations.

The following reflects the changes to the negative VOBA liability:

Six Months Ended June 30,
20222021
Balance, as of beginning of period
$1,118,716 $1,273,414 
Amortized to expense during the period(1)
(69,542)(76,087)
Balance, as of end of period$1,049,174 $1,197,327 

(1)     These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations.

The following reflects the changes to the unearned revenue reserve ("URR") and unearned front-end load ("UFEL):

Six Months Ended June 30,
20222021
Balance, as of beginning of period
$33,603 $— 
Deferrals34,753 25,004 
Amortized to revenue during the period(1)
(14,076)(1,508)
Adjustment for unrealized investment-related gains during the period(54,280)(434)
Balance, as of end of period$— $23,062 

(1)     These amounts are reported within policy fees in the consolidated statements of operations.