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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Realized Investments Gains and Losses
The following table sets forth realized investments gains and losses for the periods shown:
 
Realized investment gains (losses) - derivative financial instruments
 
 
Successor Company
 
Predecessor Company
 
For The Three Months Ended
March 31, 2016
 
February 1, 2015
to
March 31, 2015
 
January 1, 2015
to
January 31, 2015
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Derivatives related to VA contracts:
 

 
 

 
 

Interest rate futures - VA
$
37,801

 
$
(48
)
 
$
1,413

Equity futures - VA
(3,228
)
 
(32,469
)
 
9,221

Currency futures - VA
(6,158
)
 
6,137

 
7,778

Equity options - VA
16,304

 
(21,774
)
 
3,047

Interest rate swaptions - VA
(2,234
)
 
(11,328
)
 
9,268

Interest rate swaps - VA
125,593

 
(54,791
)
 
122,710

Embedded derivative - GMWB
(66,676
)
 
35,870

 
(68,503
)
Funds withheld derivative
(7,798
)
 
38,236

 
(9,073
)
Total derivatives related to VA contracts
93,604

 
(40,167
)
 
75,861

Derivatives related to FIA contracts:
 

 
 

 
 

Embedded derivative - FIA
(2,162
)
 
(2,583
)
 
1,769

Equity futures - FIA
1,382

 
184

 
(184
)
Volatility futures - FIA
—

 
4

 
—

Equity options - FIA
(5,562
)
 
4,375

 
(2,617
)
Total derivatives related to FIA contracts
(6,342
)
 
1,980

 
(1,032
)
Derivatives related to IUL contracts:
 

 
 

 
 

Embedded derivative - IUL
(738
)
 
257

 
(486
)
Equity futures - IUL
(219
)
 
14

 
3

Equity options - IUL
(27
)
 
140

 
(115
)
Total derivatives related to IUL contracts
(984
)
 
411

 
(598
)
Embedded derivative - Modco reinsurance treaties
(58,355
)
 
32,191

 
(68,026
)
Derivatives with PLC (1)
4,030

 
565

 
15,863

Other derivatives
(45
)
 
72

 
(37
)
Total realized gains (losses) - derivatives
$
31,908

 
$
(4,948
)
 
$
22,031

 
(1)These derivatives include the Interest, YRT premium support, and portfolio maintenance agreements between certain of the Company’s subsidiaries and PLC.
Realized Investment Gains and Losses for the Modco Trading Portfolio that is Included in Realized Investment Gains (Losses) - All Other Investments
The following table sets forth realized investments gains and losses for the Modco trading portfolio that is included in realized investment gains (losses) — all other investments:
 
Realized investment gains (losses) - all other investments
 
 
Successor Company
 
Predecessor Company
 
For the Three Months Ended
March 31, 2016
 
February 1, 2015
to
March 31, 2015
 
January 1, 2015
to
January 31, 2015
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Modco trading portfolio(1)
$
78,154

 
$
(33,160
)
 
$
73,062

 
(1)The Company elected to include the use of alternate disclosures for trading activities.
Components of the Gain or Loss on Derivatives that Quality as a Cash Flow Hedging Relationship

The following table presents the components of the gain or loss on derivatives that qualify as a cash flow hedging relationship:
 
Gain (Loss) on Derivatives in Cash Flow Hedging Relationship
 
 
Amount of Gains (Losses)
Deferred in
Accumulated Other
Comprehensive Income
(Loss) on Derivatives
 
Amount and Location of
Gains (Losses)
Reclassified from
Accumulated Other
Comprehensive Income
(Loss) into Income (Loss)
 
Amount and Location of
(Losses) Recognized in
Income (Loss) on
Derivatives
 
(Effective Portion)
 
(Effective Portion)
 
(Ineffective Portion)
 
 
 
Benefits and settlement
expenses
 
Realized investment
gains (losses)
 
 
 
(Dollars In Thousands)
 
 
Successor Company
 

 
 

 
 
February 1, 2015 to March 31, 2015
 

 
 

 
 

Inflation
$
(36
)
 
$
(90
)
 
$
(4
)
Total
$
(36
)
 
$
(90
)
 
$
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
Predecessor Company
 

 
 

 
 

January 1, 2015 to January 31, 2015
 

 
 

 
 

Inflation
$
13

 
$
(36
)
 
$
(7
)
Total
$
13

 
$
(36
)
 
$
(7
)
Schedule of Information About the Nature and Accounting Treatment of the Company's Primary Derivative Financial Instruments and the Location in and Effect on the Consolidated Financial Statements
The table below present information about the nature and accounting treatment of the Company’s primary derivative financial instruments and the location in and effect on the consolidated condensed financial statements for the periods presented below:
 
 
Successor Company
 
As of March 31, 2016
 
As of December 31, 2015
 
Notional
Amount
 
Fair
Value
 
Notional
Amount
 
Fair
Value
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Other long-term investments
 

 
 

 
 

 
 

Derivatives not designated as hedging instruments:
 

 
 

 
 

 
 

Interest rate swaps
$
1,640,000

 
$
176,238

 
$
1,435,000

 
$
66,408

Derivatives with PLC(1)
2,772,633

 
23,620

 
1,619,200

 
18,161

Embedded derivative - Modco reinsurance treaties
64,309

 
282

 
64,593

 
1,215

Embedded derivative - GMWB
2,423,273

 
33,146

 
1,723,081

 
49,007

Interest rate futures
176,908

 
251

 
282,373

 
1,537

Equity futures
77,742

 
2,024

 
262,485

 
1,275

Currency futures
—

 
—

 
226,936

 
2,499

Equity options
2,119,043

 
211,084

 
2,198,340

 
179,458

Interest rate swaptions
225,000

 
1,430

 
225,000

 
3,663

Other
298

 
305

 
242

 
347

 
$
9,499,206

 
$
448,380

 
$
8,037,250

 
$
323,570

Other liabilities
 

 
 

 
 

 
 

Derivatives not designated as hedging instruments:
 

 
 

 
 

 
 

Interest rate swaps
$
270,000

 
$
2,256

 
$
475,000

 
$
16,579

Embedded derivative - Modco reinsurance treaties
2,469,802

 
226,344

 
2,473,427

 
178,362

Funds withheld derivative
1,188,610

 
106,558

 
1,149,664

 
102,378

Embedded derivative - GMWB
4,869,315

 
118,345

 
1,834,308

 
67,528

Embedded derivative - FIA
1,224,245

 
113,552

 
1,110,790

 
100,329

Embedded derivative - IUL
67,518

 
37,997

 
57,760

 
29,629

Interest rate futures
974,519

 
2,493

 
793,763

 
1,539

Equity futures
448,775

 
11,241

 
233,412

 
2,599

Currency futures
295,140

 
5,411

 
46,692

 
1,115

Equity options
1,122,701

 
35,247

 
1,205,204

 
22,167

 
$
12,930,625

 
$
659,444

 
$
9,380,020

 
$
522,225


(1)These derivatives include the Interest, YRT premium support, and portfolio maintenance agreements between certain of the Company’s subsidiaries and PLC.