FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

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

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of March 31, 2016 (Successor Company):

	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities - available-for-sale
Residential mortgage-backed securities	$	—	$	1,865,846	$	3	$	1,865,849
Commercial mortgage-backed securities	—		1,457,529		—		1,457,529
Other asset-backed securities	—		425,707		537,831		963,538
U.S. government-related securities	1,092,324		346,556		—		1,438,880
State, municipalities, and political subdivisions	—		1,661,560		—		1,661,560
Other government-related securities	—		18,636		—		18,636
Corporate securities	—		25,990,310		833,737		26,824,047
Preferred stock	43,452		19,511		—		62,963
Total fixed maturity securities - available-for-sale	1,135,776		31,785,655		1,371,571		34,293,002
Fixed maturity securities - trading
Residential mortgage-backed securities	—		279,763		—		279,763
Commercial mortgage-backed securities	—		150,744		—		150,744
Other asset-backed securities	—		129,585		150,683		280,268
U.S. government-related securities	187,753		4,838		—		192,591
State, municipalities, and political subdivisions	—		325,347		—		325,347
Other government-related securities	—		60,209		—		60,209
Corporate securities	—		1,436,519		5,677		1,442,196
Preferred stock	3,155		556		—		3,711
Total fixed maturity securities - trading	190,908		2,387,561		156,360		2,734,829
Total fixed maturity securities	1,326,684		34,173,216		1,527,931		37,027,831
Equity securities	620,502		—		66,504		687,006
Other long-term investments (1)	181,093		210,239		57,048		448,380
Short-term investments	360,300		3,311		—		363,611
Total investments	2,488,579		34,386,766		1,651,483		38,526,828
Cash	232,345		—		—		232,345
Assets related to separate accounts
Variable annuity	12,789,776		—		—		12,789,776
Variable universal life	819,259		—		—		819,259
Total assets measured at fair value on a recurring basis	$	16,329,959	$	34,386,766	$	1,651,483	$	52,368,208
Liabilities:
Annuity account balances(2)	$	—	$	—	$	90,123	$	90,123
Other liabilities (1)	55,545		107,661		496,238		659,444
Total liabilities measured at fair value on a recurring basis	$	55,545	$	107,661	$	586,361	$	749,567

(1)Includes certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 (Successor Company):

	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities - available-for-sale
Residential mortgage-backed securities	$	—	$	1,765,270	$	3	$	1,765,273
Commercial mortgage-backed securities	—		1,285,864		—		1,285,864
Other asset-backed securities	—		210,020		587,031		797,051
U.S. government-related securities	1,054,353		477,824		—		1,532,177
State, municipalities, and political subdivisions	—		1,603,600		—		1,603,600
Other government-related securities	—		17,740		—		17,740
Corporate securities	83		24,876,455		902,119		25,778,657
Preferred stock	43,073		19,614		—		62,687
Total fixed maturity securities - available-for-sale	1,097,509		30,256,387		1,489,153		32,843,049
Fixed maturity securities - trading
Residential mortgage-backed securities	—		286,658		—		286,658
Commercial mortgage-backed securities	—		146,743		—		146,743
Other asset-backed securities	—		122,511		152,912		275,423
U.S. government-related securities	233,592		4,755		—		238,347
State, municipalities, and political subdivisions	—		313,354		—		313,354
Other government-related securities	—		58,827		—		58,827
Corporate securities	—		1,322,276		18,225		1,340,501
Preferred stock	2,794		1,402		—		4,196
Total fixed maturity securities - trading	236,386		2,256,526		171,137		2,664,049
Total fixed maturity securities	1,333,895		32,512,913		1,660,290		35,507,098
Equity securities	620,358		13,063		66,504		699,925
Other long-term investments (1)	113,699		141,487		68,384		323,570
Short-term investments	261,659		2,178		—		263,837
Total investments	2,329,611		32,669,641		1,795,178		36,794,430
Cash	212,358		—		—		212,358
Assets related to separate accounts
Variable annuity	12,829,188		—		—		12,829,188
Variable universal life	827,610		—		—		827,610
Total assets measured at fair value on a recurring basis	$	16,198,767	$	32,669,641	$	1,795,178	$	50,663,586
Liabilities:
Annuity account balances (2)	$	—	$	—	$	92,512	$	92,512
Other liabilities (1)	40,067		106,310		375,848		522,225
Total liabilities measured at fair value on a recurring basis	$	40,067	$	106,310	$	468,360	$	614,737

(1)Includes certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

Schedule of Valuation Method for Material Financial Instruments Included in Level 3, as Well as the Unobservable Inputs Used in the Valuation of Those Financial Instruments

The following table presents the valuation method for material financial instruments included in Level 3, as well as the unobservable inputs used in the valuation of those financial instruments:

	Successor Company
	Fair Value As of December 31, 2015		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(Dollars In Thousands)
Assets:
Other asset-backed securities	$	587,031	Discounted cash flow	Liquidity premium	0.27% - 1.49% (0.42%)
				Paydown rate	10.20% - 14.72% (13.11%)
Corporate securities	875,810		Discounted cash flow	Spread over	0.10% - 19.00% (2.61%)
				treasury
Liabilities:
Embedded derivatives - GMWB(1)	$	18,511	Actuarial cash flow model	Mortality	1994 MGDB table with
					company experience
				Lapse	0.3% - 15%, depending on
					product/duration/funded
					status of guarantee
				Utilization	99%. 10% of policies have
					a one-time over-utilization
					of 400%
				Nonperformance risk	0.18% - 1.04%
Annuity account balances(2)	92,512		Actuarial cash flow model	Asset earned rate	4.53% - 5.67%
				Expenses	$81 per policy
				Withdrawal rate	2.20%
				Mortality	1994 MGDB table with
					company experience
				Lapse	2.2% - 33.0%, depending
					on duration/surrender
					charge period
				Return on assets	1.50% - 1.85% depending on
					surrender charge period
				Nonperformance risk	0.18% - 1.04%
Embedded derivative - FIA	100,329		Actuarial cash flow model	Expenses	$81.50 per policy
				Withdrawal rate	1.1% - 4.5% depending on
					duration and tax qualification
				Mortality	1994 MGDB table with
					company experience
				Lapse	2.5% - 40.0%, depending
					on duration/surrender
					charge period
				Nonperformance risk	0.18% - 1.04%
Embedded derivative - IUL	29,629		Actuarial cash flow model	Mortality	38% - 153% of 2015
					VBT Primary Tables
				Lapse	0.5% - 10.0%, depending
					on duration/distribution
					channel and smoking class
				Nonperformance risk	0.18% - 1.04%

(1)The fair value for the GMWB embedded derivative is presented as a net liability, for the purposes of this chart.  Excludes modified coinsurance arrangements.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents the valuation method for material financial instruments included in Level 3, as well as the unobservable inputs used in the valuation of those financial instruments:

	Successor Company
	Fair Value As of March 31, 2016		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(Dollars In Thousands)
Assets:
Other asset-backed securities	$	530,374	Discounted cash flow	Liquidity premium	0.06% - 1.10% (0.33%)
				Paydown rate	10.55% - 12.15% (11.21%)
Corporate securities	808,025		Discounted cash flow	Spread over treasury	0.81% - 22.50% (2.67%)
Liabilities:
Embedded derivatives - GMWB(1)	$	85,187	Actuarial cash flow model	Mortality	1994 MGDB table with
					company experience
				Lapse	0.3% - 15%, depending on
					product/duration/funded
					status of guarantee
				Utilization	99%. 10% of policies have
					a one-time over-utilization
					of 400%
				Nonperformance risk	0.26% - 1.22%
Annuity account balances(2)	90,123		Actuarial cash flow model	Asset earned rate	4.53% - 5.67%
				Expenses	$80 per policy w/2.5% inflation
				Withdrawal rate	2.20%
				Mortality	1994 MGDB table with
					company experience
				Lapse	2.2% - 33.0%, depending
					on duration/surrender
					charge period
				Return on assets	1.50% - 1.85% depending on
					surrender charge period
				Nonperformance risk	0.26% - 1.22%
Embedded derivative - FIA	113,552		Actuarial cash flow model	Expenses	$80 per policy w/2.5% inflation
				Withdrawal rate	1.1% - 4.5% depending on
					duration and tax qualification
				Mortality	1994 MGDB table with
					company experience
				Lapse	2.5% - 40.0%, depending on
					on duration/surrender
					charge period
				Nonperformance risk	0.26% - 1.22%
Embedded derivative - IUL	37,997		Actuarial cash flow model	Mortality	38% - 153% of 2015
					VBT Primary Tables
				Lapse	0.5% - 10.0%, depending on
					duration/distribution channel
					and smoking class
				Nonperformance risk	0.26% - 1.22%

(1)The fair value for the GMWB embedded derivative is presented as a net liability for the purposes of this chart. Excludes modified coinsurance arrangements.

(2)Represents liabilities related to fixed indexed annuities.

Schedule of Reconciliation of the Beginning and Ending Balances for Fair Value Measurements, for Which the Company Has Used Significant Unobservable Inputs (Level 3)

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the three months ended March 31, 2016 (Successor Company), for which the Company has used significant unobservable inputs (Level 3):

			Total Realized and Unrealized Gains				Total Realized and Unrealized Losses																							Total Gains (losses) included in
	Beginning Balance		Included in Earnings		Included in Other Comprehensive Income		Included in Earnings			Included in Other Comprehensive Income			Purchases		Sales			Issuances		Settlements		Transfers in/out of Level 3			Other			Ending Balance		Earnings related to Instruments still held at the Reporting Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	587,031		6,859		—		—			(13,057		)	—		(50,820		)	—		—		7,457			361			537,831		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	902,119		—		14,922		(4,135		)	(6,287		)	16,000		(24,742		)	—		—		(61,179		)	(2,961		)	833,737		—
Total fixed maturity securities - available-for-sale	1,489,153		6,859		14,922		(4,135		)	(19,344		)	16,000		(75,562		)	—		—		(53,722		)	(2,600		)	1,371,571		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	152,912		228		—		(934		)	—			—		(1,603		)	—		—		172			(92		)	150,683		(709		)
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	18,225		308		—		(259		)	—			—		(4,072		)	—		—		(8,479		)	(46		)	5,677		216
Total fixed maturity securities - trading	171,137		536		—		(1,193		)	—			—		(5,675		)	—		—		(8,307		)	(138		)	156,360		(493		)
Total fixed maturity securities	1,660,290		7,395		14,922		(5,328		)	(19,344		)	16,000		(81,237		)	—		—		(62,029		)	(2,738		)	1,527,931		(493		)
Equity securities	66,504		—		—		—			—			—		—			—		—		—			—			66,504		—
Other long-term investments(1)	68,384		4,217		—		(16,982		)	—			1,429		—			—		—		—			—			57,048		(12,765		)
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	1,795,178		11,612		14,922		(22,310		)	(19,344		)	17,429		(81,237		)	—		—		(62,029		)	(2,738		)	1,651,483		(13,258		)
Total assets measured at fair value on a recurring basis	$	1,795,178	$	11,612	$	14,922	$	(22,310	)	$	(19,344	)	$	17,429	$	(81,237	)	$	—	$	—	$	(62,029	)	$	(2,738	)	$	1,651,483	$	(13,258	)
Liabilities:
Annuity account balances(2)	$	92,512	$	—	$	—	$	(566	)	$	—		$	—	$	—		$	187	$	3,142	—			$	—		$	90,123	$	—
Other liabilities(1)	375,848		368		—		(120,758		)	—			—		—			—		—		—			—			496,238		(120,390		)
Total liabilities measured at fair value on a recurring basis	$	468,360	$	368	$	—	$	(121,324	)	$	—		$	—	$	—		$	187	$	3,142	$	—		$	—		$	586,361	$	(120,390	)

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the period of February 1, 2015 to March 31, 2015 (Successor Company), for which the Company has used significant unobservable inputs (Level 3):

			Total Realized and Unrealized Gains				Total Realized and Unrealized Losses																							Total Gains (losses) included in
	Beginning Balance		Included in Earnings		Included in Other Comprehensive Income		Included in Earnings			Included in Other Comprehensive Income			Purchases		Sales			Issuances		Settlements		Transfers in/out of Level 3			Other			Ending Balance		Earnings related to Instruments still held at the Reporting Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	603,646		—		—		—			(3,568		)	—		(40		)	—		—		—			94			600,132		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		(3,675		)	—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	1,307,259		635		11,618		—			—			22,000		(35,787		)	—		—		(20,050		)	(2,533		)	1,283,142		—
Total fixed maturity securities - available-for-sale	1,914,583		635		11,618		—			(3,568		)	22,000		(39,502		)	—		—		(20,050		)	(2,439		)	1,883,277		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	169,473		3,360		—		—			—			—		(2,408		)	—		—		—			75			170,500		(1,242		)
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	25,130		34		—		(66		)	—			—		(5,423		)	—		—		—			(61		)	19,614		(1,087		)
Total fixed maturity securities - trading	194,603		3,394		—		(66		)	—			—		(7,831		)	—		—		—			14			190,114		(2,329		)
Total fixed maturity securities	2,109,186		4,029		11,618		(66		)	(3,568		)	22,000		(47,333		)	—		—		(20,050		)	(2,425		)	2,073,391		(2,329		)
Equity securities	66,691		—		—		—			—			—		—			—		—		—			—			66,691		—
Other long-term investments(1)	64,200		15,050		—		(28		)	—			—		—			—		—		—			—			79,222		15,022
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	2,240,077		19,079		11,618		(94		)	(3,568		)	22,000		(47,333		)	—		—		(20,050		)	(2,425		)	2,219,304		12,693
Total assets measured at fair value on a recurring basis	$	2,240,077	$	19,079	$	11,618	$	(94	)	$	(3,568	)	$	22,000	$	(47,333	)	$	—	$	—	$	(20,050	)	$	(2,425	)	$	2,219,304	$	12,693
Liabilities:
Annuity account balances(2)	$	98,279	$	—	$	—	$	(632	)	$	—		$	—	$	—		$	14	$	1,817	$	—		$	—		$	97,108	$	—
Other liabilities(1)	530,118		64,891		—		(12,502		)	—			—		—			—		—		—			—			477,729		52,389
Total liabilities measured at fair value on a recurring basis	$	628,397	$	64,891	$	—	$	(13,134	)	$	—		$	—	$	—		$	14	$	1,817	$	—		$	—		$	574,837	$	52,389

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for period of January 1, 2015 to January 31, 2015 (Predecessor Company), for which the Company has used significant unobservable inputs (Level 3):

			Total Realized and Unrealized Gains				Total Realized and Unrealized Losses																						Total Gains (losses) included in
	Beginning Balance		Included in Earnings		Included in Other Comprehensive Income		Included in Earnings			Included in Other Comprehensive Income			Purchases		Sales			Issuances		Settlements		Transfers in/out of Level 3		Other			Ending Balance		Earnings related to Instruments still held at the Reporting Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—	$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	563,961		—		—		—			(3,867		)	—		(32		)	—		—		43,205		379			603,646		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		—			—		—		—		—			3,675		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Corporate securities	1,325,683		—		12,282		—			(23,029		)	—		(7,062		)	—		—		—		(615		)	1,307,259		—
Total fixed maturity securities - available-for-sale	1,893,322		—		12,282		—			(26,896		)	—		(7,094		)	—		—		43,205		(236		)	1,914,583		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	169,461		586		—		(139		)	—			—		(472		)	—		—		—		37			169,473		447
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—		—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Corporate securities	24,744		602		—		(196		)	—			—		(20		)	—		—		—		—			25,130		406
Total fixed maturity securities - trading	194,205		1,188		—		(335		)	—			—		(492		)	—		—		—		37			194,603		853
Total fixed maturity securities	2,087,527		1,188		12,282		(335		)	(26,896		)	—		(7,586		)	—		—		43,205		(199		)	2,109,186		853
Equity securities	66,691		—		—		—			—			—		—			—		—		—		—			66,691		—
Other long-term investments(1)	44,625		16,617		—		(15,166		)	—			—		—			—		—		—		—			46,076		1,451
Short-term investments	—		—		—		—			—			—		—			—		—		—		—			—		—
Total investments	2,198,843		17,805		12,282		(15,501		)	(26,896		)	—		(7,586		)	—		—		43,205		(199		)	2,221,953		2,304
Total assets measured at fair value on a recurring basis	$	2,198,843	$	17,805	$	12,282	$	(15,501	)	$	(26,896	)	$	—	$	(7,586	)	$	—	$	—	$	43,205	$	(199	)	$	2,221,953	$	2,304
Liabilities:
Annuity account balances(2)	$	97,825	$	—	$	—	$	(536	)	$	—		$	—	$	—		$	7	$	419	$	—	$	—		$	97,949	$	—
Other liabilities(1)	506,343		61		—		(125,995		)	—			—		—			—		—		—		—			632,277		(125,934		)
Total liabilities measured at fair value on a recurring basis	$	604,168	$	61	$	—	$	(126,531	)	$	—		$	—	$	—		$	7	$	419	$	—	$	—		$	730,226	$	(125,934	)

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

Schedule of the Carrying Amounts and Estimated Fair Value of the Company's Financial Instruments

The carrying amounts and estimated fair values of the Company’s financial instruments as of the periods shown below are as follows:

		Successor Company
		As of March 31, 2016				As of December 31, 2015
	Fair Value Level	Carrying Amounts		Fair Values		Carrying Amounts		Fair Values
		(Dollars In Thousands)
Assets:
Mortgage loans on real estate	3	$	5,689,960	$	5,667,207	$	5,662,812	$	5,529,803
Policy loans	3	1,684,088		1,684,088		1,699,508		1,699,508
Fixed maturities, held-to-maturity(1)	3	2,783,302		2,757,674		593,314		515,000
Liabilities:
Stable value product account balances	3	$	2,098,870	$	2,111,461	$	2,131,822	$	2,124,712
Annuity account balances	3	10,765,723		10,296,214		10,719,862		10,274,571
Debt:
Non-recourse funding obligations(2)	3	$	2,984,486	$	2,961,759	$	1,951,563	$	1,621,773

Except as noted below, fair values were estimated using quoted market prices.

⁽¹⁾    Securities purchased from unconsolidated affiliates, Red Mountain LLC and Steel City LLC.

⁽²⁾    Of this carrying amount, $2.8 billion, fair value of $2.7 billion, as of March 31, 2016 (Successor Company), and $500.0 million, fair value of $495.5 million, as of December 31, 2015 (Successor Company), relates to non-recourse funding obligations issued by Golden Gate and Golden Gate V.