XML 58 R44.htm IDEA: XBRL DOCUMENT v3.3.1.900
INVESTMENT OPERATIONS (Tables)
 12 Months Ended
Dec. 31, 2015
INVESTMENT OPERATIONS  
Summary of major categories of net investment income
Major categories of net investment income are summarized as follows:
 
 
Successor Company
 
Predecessor Company
 
February 1, 2015
to
December 31, 2015
 
January 1, 2015
to
January 31, 2015
 
For The Year Ended December 31,
 
 
 
2014
 
2013
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Fixed maturities
$
1,266,769

 
$
140,052

 
$
1,711,722

 
$
1,508,924

Equity securities
40,879

 
2,556

 
41,533

 
26,735

Mortgage loans
252,577

 
24,977

 
360,778

 
333,093

Investment real estate
2,528

 
112

 
4,483

 
3,555

Short-term investments
93,938

 
9,974

 
109,592

 
72,433

 
1,656,691

 
177,671

 
2,228,108

 
1,944,740

Other investment expenses
123,895

 
13,066

 
130,095

 
108,552

Net investment income
$
1,532,796

 
$
164,605

 
$
2,098,013

 
$
1,836,188
Summary of net realized investment gains (losses) for invested assets
Net realized investment gains (losses) for all other investments are summarized as follows:
 
 
Successor Company
 
Predecessor Company
 
February 1, 2015
to
December 31, 2015
 
January 1, 2015
to
January 31, 2015
 
For The Year Ended December 31,
 
 
 
2014
 
2013
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Fixed maturities
$
1,272

 
$
6,891

 
$
75,074

 
$
63,161

Equity securities
(1,001
)
 
—

 
495

 
3,276

Impairments on fixed maturity securities
(26,993
)
 
(481
)
 
(7,275
)
 
(19,100
)
Impairments on equity securities
—

 
—

 
—

 
(3,347
)
Modco trading portfolio
(167,359
)
 
73,062

 
142,016

 
(178,134
)
Other investments
153

 
1,200

 
(12,283
)
 
(9,840
)
Total realized gains (losses) - investments
$
(193,928
)
 
$
80,672

 
$
198,027

 
$
(143,984
)
Schedule of amortized cost and fair value of the Company's investments classified as available-for-sale
The amortized cost and fair value of the Company’s investments classified as available-for-sale as of December 31, 2015 (Successor Company) and as of December 31, 2014 (Predecessor Company), are as follows:
 

 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
Total OTTI
Recognized
in OCI(1)
 
(Dollars In Thousands)
Successor Company
 
 
 
 
 
 
 
 
 
As of December 31, 2015
 

 
 

 
 

 
 

 
 

Fixed maturities:
 

 
 

 
 

 
 

 
 

Residential mortgage-backed securities
$
1,773,099

 
$
9,286

 
$
(17,112
)
 
$
1,765,273

 
$
—

Commercial mortgage-backed securities
1,327,288

 
428

 
(41,852
)
 
1,285,864

 
—

Other asset-backed securities
813,056

 
2,758

 
(18,763
)
 
797,051

 
—

U.S. government-related securities
1,566,260

 
449

 
(34,532
)
 
1,532,177

 
—

Other government-related securities
18,483

 
—

 
(743
)
 
17,740

 
—

States, municipals, and political subdivisions
1,729,732

 
682

 
(126,814
)
 
1,603,600

 
—

Corporate securities
28,433,530

 
26,147

 
(2,681,020
)
 
25,778,657

 
(605
)
Preferred stock
64,362

 
192

 
(1,867
)
 
62,687

 
—

 
35,725,810

 
39,942

 
(2,922,703
)
 
32,843,049

 
(605
)
Equity securities
684,888

 
13,255

 
(6,477
)
 
691,666

 
—

Short-term investments
202,110

 
—

 
—

 
202,110

 
—

 
$
36,612,808

 
$
53,197

 
$
(2,929,180
)
 
$
33,736,825

 
$
(605
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
Total OTTI
Recognized
in OCI(1)
 
(Dollars In Thousands)
Predecessor Company
 
 
 
 
 
 
 
 
 
As of December 31, 2014
 

 
 

 
 

 
 

 
 

Fixed maturities:
 

 
 

 
 

 
 

 
 

Residential mortgage-backed securities
$
1,374,141

 
$
56,381

 
$
(12,264
)
 
$
1,418,258

 
$
6,404

Commercial mortgage-backed securities
1,119,979

 
59,637

 
(2,364
)
 
1,177,252

 
—

Other asset-backed securities
857,365

 
17,961

 
(35,950
)
 
839,376

 
(95
)
U.S. government-related securities
1,394,028

 
44,149

 
(9,282
)
 
1,428,895

 
—

Other government-related securities
16,939

 
3,233

 
—

 
20,172

 
—

States, municipals, and political subdivisions
1,391,526

 
296,594

 
(431
)
 
1,687,689

 
—

Corporate securities
24,744,050

 
2,760,703

 
(138,975
)
 
27,365,778

 
—

 
30,898,028

 
3,238,658

 
(199,266
)
 
33,937,420

 
6,309

Equity securities
713,813

 
35,646

 
(14,153
)
 
735,306

 
—

Short-term investments
151,572

 
—

 
—

 
151,572

 
—

 
$
31,763,413

 
$
3,274,304

 
$
(213,419
)
 
$
34,824,298

 
$
6,309


(1)These amounts are included in the gross unrealized gains and gross unrealized losses columns above.
Schedule of amortized cost and fair value of the Company's investments classified as held-to-maturity
The amortized cost and fair value of the Company's investments classified as held-to-maturity as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), are as follows:
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
Total OTTI
Recognized
in OCI
 
(Dollars In Thousands)
Successor Company
 
 
 
 
 
 
 
 
 
As of December 31, 2015
 

 
 

 
 

 
 

 
 

Fixed maturities:
 

 
 

 
 

 
 

 
 

Other
$
593,314

 
$
—

 
$
(78,314
)
 
$
515,000

 
$
—

 
$
593,314

 
$
—

 
$
(78,314
)
 
$
515,000

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
Total OTTI
Recognized
in OCI
 
(Dollars In Thousands)
Predecessor Company
 

 
 

 
 

 
 

 
 

As of December 31, 2014
 
 
 
 
 
 
 
 
 
Fixed maturities:
 

 
 

 
 

 
 

 
 

Other
$
435,000

 
$
50,422

 
$
—

 
$
485,422

 
$
—

 
$
435,000

 
$
50,422

 
$
—

 
$
485,422

 
$
—
Schedule of amortized cost and fair value of available-for-sale and held-to-maturity fixed maturities, by expected maturity
The amortized cost and fair value of available-for-sale and held-to-maturity fixed maturities as of December 31, 2015 (Successor Company), by expected maturity, are shown below. Expected maturities of securities without a single maturity date are allocated based on estimated rates of prepayment that may differ from actual rates of prepayment.
 
 
Available-for-sale
 
Held-to-maturity
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Due in one year or less
$
937,594

 
$
935,861

 
$
—

 
$
—

Due after one year through five years
5,860,269

 
5,725,005

 
—

 
—

Due after five years through ten years
7,791,519

 
7,494,182

 
—

 
—

Due after ten years
21,136,428

 
18,688,001

 
593,314

 
515,000

 
$
35,725,810

 
$
32,843,049

 
$
593,314

 
$
515,000
Schedule of available-for-sale credit losses on fixed maturities held by the Company for which a portion of an other-than-temporary impairment was recognized in other comprehensive income
The following chart is a rollforward of available-for-sale credit losses on fixed maturities held by the Company for which a portion of an other-than-temporary impairment was recognized in other comprehensive income (loss):
 
 
Successor Company
 
Predecessor Company
 
February 1, 2015
to
December 31, 2015
 
January 1, 2015
to
January 31, 2015
 
For The Year Ended December 31,
 
 
 
2014
 
2013
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Beginning balance
$
—

 
$
15,463

 
$
41,674

 
$
121,237

Additions for newly impaired securities
22,761

 
—

 
—

 
3,516

Additions for previously impaired securities
—

 
221

 
2,263

 
12,066

Reductions for previously impaired securities due to a change in expected cash flows
—

 
—

 
(28,474
)
 
(87,908
)
Reductions for previously impaired securities that were sold in the current period
—

 
—

 
—

 
(7,237
)
Other
—

 
—

 
—

 
—

Ending balance
$
22,761

 
$
15,684

 
$
15,463

 
$
41,674
Schedule of investments' gross unrealized losses and fair value of the Company's investments that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position
The following table includes the gross unrealized losses and fair value of the Company’s investments that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2014 (Predecessor Company):
 
 
Less Than 12 Months
 
12 Months or More
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
(Dollars In Thousands)
Residential mortgage-backed securities
$
165,877

 
$
(9,547
)
 
$
67,301

 
$
(2,717
)
 
$
233,178

 
$
(12,264
)
Commercial mortgage-backed securities
49,908

 
(334
)
 
102,529

 
(2,030
)
 
152,437

 
(2,364
)
Other asset-backed securities
108,665

 
(6,473
)
 
537,488

 
(29,477
)
 
646,153

 
(35,950
)
U.S. government-related securities
231,917

 
(3,868
)
 
280,803

 
(5,414
)
 
512,720

 
(9,282
)
Other government-related securities
—

 
—

 
—

 
—

 
—

 
—

States, municipalities, and political subdivisions
1,905

 
(134
)
 
10,481

 
(297
)
 
12,386

 
(431
)
Corporate securities
1,657,103

 
(76,285
)
 
776,863

 
(62,690
)
 
2,433,966

 
(138,975
)
Equities
17,430

 
(218
)
 
129,509

 
(13,935
)
 
146,939

 
(14,153
)
 
$
2,232,805

 
$
(96,859
)
 
$
1,904,974

 
$
(116,560
)
 
$
4,137,779

 
$
(213,419
)
The following table includes the gross unrealized losses and fair value of the Company’s investments that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2015 (Successor Company):
 
 
Less Than 12 Months
 
12 Months or More
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
(Dollars In Thousands)
Residential mortgage-backed securities
$
977,433

 
$
(17,112
)
 
$
—

 
$
—

 
$
977,433

 
$
(17,112
)
Commercial mortgage-backed securities
1,232,495

 
(41,852
)
 
—

 
—

 
1,232,495

 
(41,852
)
Other asset-backed securities
633,274

 
(18,763
)
 
—

 
—

 
633,274

 
(18,763
)
U.S. government-related securities
1,291,476

 
(34,532
)
 
—

 
—

 
1,291,476

 
(34,532
)
Other government-related securities
17,740

 
(743
)
 
—

 
—

 
17,740

 
(743
)
States, municipalities, and political subdivisions
1,566,752

 
(126,814
)
 
—

 
—

 
1,566,752

 
(126,814
)
Corporate securities
24,235,121

 
(2,681,020
)
 
—

 
—

 
24,235,121

 
(2,681,020
)
Preferred stock
34,685

 
(1,867
)
 
—

 
—

 
34,685

 
(1,867
)
Equities
248,493

 
(6,477
)
 
—

 
—

 
248,493

 
(6,477
)
 
$
30,237,469

 
$
(2,929,180
)
 
$
—

 
$
—

 
$
30,237,469

 
$
(2,929,180
)
Summary of change in unrealized gains (losses), net of income tax, on fixed maturity and equity securities, classified as available-for-sale
The change in unrealized gains (losses), net of income tax, on fixed maturity and equity securities, classified as available-for-sale is summarized as follows:
 
 
Successor Company
 
Predecessor Company
 
February 1, 2015
to
December 31, 2015
 
January 1, 2015
to
January 31, 2015
 
For The Year Ended December 31,
 
 
 
2014
 
2013
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Fixed maturities
$
(1,873,795
)
 
669,160

 
$
1,224,248

 
$
(1,269,277
)
Equity securities
4,406

 
12,172

 
33,642

 
(20,899
)