Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of the date indicated.

	December 31, 2021
	Total		Level 1	Level 2	Level 3
	(In thousands)
Debt securities, available-for-sale	$	9,068,946	—	8,741,984	326,962
Debt securities, trading	1,077,438		—	1,002,616	74,822
Equity securities	28,217		23,795	4,422	—
Mortgage loans	8,469		—	—	8,469
Derivatives, index options	101,622		—	—	101,622
Total assets	$	10,284,692	23,795	9,749,022	511,875
Policyholder account balances (a)	$	142,761	—	—	142,761
Other liabilities (b)	(76,856)		—	(84,725)	7,869
Total liabilities	$	65,905	—	(84,725)	150,630

	December 31, 2020
	Total		Level 1	Level 2	Level 3
	(In thousands)
Debt securities, available-for-sale	$	10,770,923	—	10,770,923	—
Equity securities	17,744		17,744	—	—
Derivatives, index options	132,821		—	—	132,821
Total assets	$	10,921,488	17,744	10,770,923	132,821
Policyholder account balances (a)	$	161,351	—	—	161,351
Other liabilities (c)	6,202		—	—	6,202
Total liabilities	$	167,553	—	—	167,553

(a)  Represents the fair value of certain product-related embedded derivatives that were recorded at fair value.

(b)  Represents the liability for share-based compensation and the embedded derivative for funds withheld.

(c)  Represents the liability for share-based compensation.

Schedule of Significant Unobservable Inputs for Fair Value Measurements

The following tables provide additional information about fair value measurements for which significant unobservable inputs (Level 3) were utilized to determine fair value.

	December 31, 2021
	Assets
	Debt Securities, Available-for-Sale		Trading Securities	Derivatives, Index Options	Mortgage Loans	Total Assets
	(In thousands)
Beginning balance, January 1, 2021	$	—	—	132,821	—	132,821
Total realized and unrealized gains (losses):
Included in net earnings	—		757	120,717	412	121,886
Included in other comprehensive income	876		—	—	—	876
Purchases, sales, issuances and settlements, net:
Purchases	245,456		75,265	47,203	8,103	376,027
Sales	—		—	—	—	—
Issuances	—		—	—	—	—
Settlements	(13,031)		(1,200)	(199,119)	(46)	(213,396)
Transfers into (out of) Level 3	93,661		—	—	—	93,661
Balance at end of period	$	326,962	74,822	101,622	8,469	511,875
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period:
Net investment income	—		757	54,420	412	55,589
Benefits and expenses	—		—	—	—	—
Total	$	—	757	54,420	412	55,589

	December 31, 2021
	Other Liabilities
	Policyholder Account Balances		Share-based Comp	Total Other Liabilities
	(In thousands)
Beginning balance, January 1, 2021	161,351		6,202	167,553
Total realized and unrealized gains (losses):
Included in net earnings	133,326		5,581	138,907
Included in other comprehensive income	—		—	—
Purchases, sales, issuances and settlements, net:
Purchases	47,203		—	47,203
Sales	—		—	—
Issuances	—		182	182
Settlements	(199,119)		(4,096)	(203,215)
Transfers into (out of) Level 3	—		—	—
Balance at end of period	$	142,761	7,869	150,630
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period:
Net investment income	—		—	—
Benefits and expenses	54,420		5,581	60,001
Total	$	54,420	5,581	60,001

	December 31, 2020
	Assets				Other Liabilities
		Derivatives, Index Options		Total Assets	Policyholder Account Balances	Share-based Comp	Contingent Consideration	Total Other Liabilities
	(In thousands)
Beginning balance, January 1, 2020		$	157,588	157,588	155,902	11,225	4,076	171,203
Total realized and unrealized gains (losses):
Included in net earnings		14,754		14,754	44,970	(2,350)	(4,076)	38,544
Included in other comprehensive income		—		—	—	—	—	—
Purchases, sales, issuances and settlements, net:
Purchases		61,837		61,837	61,837	—	—	61,837
Sales		—		—	—	—	—	—
Issuances		—		—	—	164	—	164
Settlements		(101,358)		(101,358)	(101,358)	(2,837)	—	(104,195)
Transfers into (out of) Level 3		—		—	—	—	—	—
Balance at end of period		$	132,821	132,821	161,351	6,202	—	167,553
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period:
Net investment income		$	70,984	70,984	—	—	—	—
Benefits and expenses		—		—	70,984	(2,350)	(4,076)	64,558
Total		$	70,984	70,984	70,984	(2,350)	(4,076)	64,558

Schedule of Fair Value, Valuation Techniques and Significant Unobservable Inputs for Financial Instruments Categorized as Level 3

The following table presents the valuation method for financial assets and liabilities categorized as level 3, as well as the unobservable inputs used in the valuation of those financial instruments:

	December 31, 2021
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(In thousands)
Assets:
Debt securities, available-for-sale	$	113,268	Discounted cash flow	Discount rate	2.40% - 6.14% (4.06%)
Derivatives, index options	101,622		Broker prices	Implied volatility	11.76% - 16.54% (14.55%)
Mortgage loans	8,469		Discounted cash flow	Spread	100 - 250 bps
Total assets	$	223,359
Liabilities:
Policyholder account balances	$	142,761	Deterministic cash flow model	Projected option cost	0.03% - 14.49% (2.65%)
Share based compensation	7,869		Black-Scholes model	Expected term	1.9 to 10.0 years
				Expected volatility	35.05%
Total liabilities	$	150,630

	December 31, 2020
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(In thousands)
Assets:
Derivatives, index options	$	132,821	Broker prices	Implied volatility	12.96% - 53.69% (20.70%)
Total assets	$	132,821
Liabilities:
Policyholder account balances	$	161,351	Deterministic cash flow model	Projected option cost	0.0% - 45.04% (3.27%)
Share based compensation	6,202		Black-Scholes model	Expected term	1.0 to 9.9 years
				Expected volatility	33.47%
Total liabilities	$	167,553

Schedule of Assets by Pricing Source and Fair Value Hierarchy Measured at Fair Value on Recurring Basis

The following table presents, by pricing source and fair value hierarchy level, the Company’s assets that are measured at fair value on a recurring basis:

	December 31, 2021
	Total			Level 1		Level 2		Level 3
	(In thousands)
Debt securities, available-for-sale:
Priced by third-party vendors	$	8,955,678		—		8,741,984		213,694
Priced internally	113,268			—		—		113,268
Subtotal	9,068,946			—		8,741,984		326,962
Debt securities, trading:
Priced by third-party vendors	1,077,438			—		1,002,616		74,822
Priced internally	—			—		—		—
Subtotal	1,077,438			—		1,002,616		74,822
Equity securities:
Priced by third-party vendors	28,217			23,795		4,422		—
Priced internally	—			—		—		—
Subtotal	28,217			23,795		4,422		—
Mortgage loans:
Priced by third-party vendors	—			—		—		—
Priced internally	8,469			—		—		8,469
Subtotal	8,469			—		—		8,469
Derivatives, index options:
Priced by third-party vendors	101,622			—		—		101,622
Priced internally	—			—		—		—
Subtotal	101,622			—		—		101,622
Total	$	10,284,692		23,795		9,749,022		511,875
Percent of total	100.0		%	0.2	%	94.8	%	5.0	%

Schedule of Carrying Amounts and Fair Values of Financial Instruments

The carrying amounts and fair values of the Company's financial instruments are as follows:

	December 31, 2021
				Fair Value Hierarchy Level
	Carrying Values		Fair Values	Level 1	Level 2	Level 3
	(In thousands)
ASSETS
Debt securities, available-for-sale	$	9,068,946	9,068,946	—	8,741,984	326,962
Debt securities, trading	1,077,438		1,077,438	—	1,002,616	74,822
Cash and cash equivalents	714,624		714,624	702,632	11,992	—
Mortgage loans	487,304		513,246	—	—	513,246
Real estate	28,606		47,027	—	—	47,027
Policy loans	71,286		110,492	—	—	110,492
Other loans	24,266		25,085	—	—	25,085
Derivatives, index options	101,622		101,622	—	—	101,622
Equity securities	28,217		28,217	23,795	4,422	—
Life interest in Libbie Shearn Moody Trust	8,254		12,775	—	—	12,775
Other investments	4,537		24,876	—	—	24,876
LIABILITIES
Deferred annuity contracts	$	6,463,314	4,703,331	—	—	4,703,331
Immediate annuity and supplemental contracts	422,209		457,787	—	—	457,787

	December 31, 2020
				Fair Value Hierarchy Level
	Carrying Values		Fair Values	Level 1	Level 2	Level 3
	(In thousands)
ASSETS
Debt securities, available-for-sale	$	10,770,923	10,770,923	—	10,770,923	—
Cash and cash equivalents	581,059		581,059	581,059	—	—
Mortgage loans	332,521		348,175	—	—	348,175
Real Estate	33,783		48,577	—	—	48,577
Policy loans	74,083		121,260	—	—	121,260
Other loans	23,396		23,691	—	—	23,691
Derivatives, index options	132,821		132,821	—	—	132,821
Equity Securities	17,744		17,744	17,744	—	—
Life interest in Libbie Shearn Moody Trust	9,083		12,775	—	—	12,775
Other investments	4,513		22,580	—	—	22,580
LIABILITIES
Deferred annuity contracts	$	6,662,730	5,192,663	—	—	5,192,663
Immediate annuity and supplemental contracts	412,526		467,538	—	—	467,538