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INVESTMENT OPERATIONS (Tables)
 6 Months Ended
Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]  
Summary of Net Realized Investment Gains (Losses) for All Other Investments
Net realized gains (losses) for all other investments are summarized as follows:
 
 
Successor Company
 
Predecessor Company
 
For The Three Months Ended
June 30, 2016
 
For The Three Months Ended June 30, 2015
 
For The Six Months Ended June 30, 2016
 
February 1, 2015
to
June 30, 2015
 
January 1, 2015
to
January 31, 2015
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Fixed maturities
$
16,730

 
$
3,329

 
$
22,432

 
$
3,702

 
$
6,891

Equity securities
202

 
21

 
36

 
21

 
—

Impairments on corporate securities
(964
)
 
(5,734
)
 
(3,581
)
 
(5,734
)
 
(481
)
Modco trading portfolio
76,201

 
(108,741
)
 
154,355

 
(141,901
)
 
73,062

Other investments
(4,353
)
 
3,044

 
(6,334
)
 
775

 
1,200

Total realized gains (losses) - investments
$
87,816

 
$
(108,081
)
 
$
166,908

 
$
(143,137
)
 
$
80,672

 
Gross realized gains and gross realized losses on investments available-for-sale (fixed maturities, equity securities, and short-term investments) are as follows:
 
Successor Company
 
Predecessor Company
 
For The Three Months Ended June 30, 2016
 
For The Three Months Ended June 30, 2015
 
For The Six Months Ended June 30, 2016
 
February 1, 2015
to
June 30, 2015
 
January 1, 2015
to
January 31, 2015
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Gross realized gains
$
18,752

 
$
5,425

 
$
27,781

 
$
6,932

 
$
6,920

Gross realized losses
$
(2,784
)
 
$
(7,809
)
 
$
(8,894
)
 
$
(8,943
)
 
$
(469
)
Impairments losses included in gross realized losses
$
(964
)
 
$
(5,734
)
 
$
(3,581
)
 
$
(5,734
)
 
$
—
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 June 30, 2016 (Successor Company) and December 31, 2015 (Successor Company), are as follows:
 
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
Total OTTI
Recognized
in OCI(1)
Successor Company
 
 
 
 
 
As of June 30, 2016
 
 
 
 
 
 
 
(Dollars In Thousands)
 
 
Fixed maturities:
 
 

 
 

 
 

 
 

 
 

Residential mortgage-backed securities
 
$
1,891,316

 
$
49,750

 
$
(9,253
)
 
$
1,931,813

 
$
(1
)
Commercial mortgage-backed securities
 
1,552,028

 
29,870

 
(3,726
)
 
1,578,172

 
—

Other asset-backed securities
 
1,151,430

 
5,267

 
(36,055
)
 
1,120,642

 
—

U.S. government-related securities
 
1,350,769

 
21,232

 
(205
)
 
1,371,796

 
—

Other government-related securities
 
18,348

 
332

 
—

 
18,680

 
—

States, municipals, and political subdivisions
 
1,727,664

 
31,429

 
(21,594
)
 
1,737,499

 
—

Corporate securities
 
28,740,691

 
373,820

 
(1,051,924
)
 
28,062,587

 
(4,560
)
Preferred stock
 
64,362

 
1,732

 
(1,667
)
 
64,427

 
—

 
 
36,496,608

 
513,432

 
(1,124,424
)
 
35,885,616

 
(4,561
)
Equity securities
 
673,448

 
26,392

 
(5,092
)
 
694,748

 
—

Short-term investments
 
206,157

 
—

 
—

 
206,157

 
—

 
 
$
37,376,213

 
$
539,824

 
$
(1,129,516
)
 
$
36,786,521

 
$
(4,561
)
 
 
 
 
 
 
 
 
 
 
 
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
)
 
(1) These amounts are included in the gross unrealized gains and gross unrealized losses columns above.
Schedule of Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Fixed Maturities, by Expected Maturity
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.
 
 
Successor Company
 
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
$
750,175

 
$
750,605

 
$
—

 
$
—

Due after one year through five years
6,878,977

 
6,918,323

 
—

 
—

Due after five years through ten years
7,673,357

 
7,783,110

 
—

 
—

Due after ten years
21,194,099

 
20,433,578

 
2,779,280

 
2,853,788

 
$
36,496,608

 
$
35,885,616

 
$
2,779,280

 
$
2,853,788
Gain (Loss) on Investments
The chart below summarizes the Company's other-than-temporary impairments of investments. All of the impairments were related to fixed maturities.
 
 
Successor Company
 
Predecessor Company
 
For The Three Months Ended June 30, 2016
 
For The Three Months Ended June 30, 2015
 
For The Six Months Ended June 30, 2016
 
February 1, 2015
to
June 30, 2015
 
January 1, 2015
to
January 31, 2015
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Other-than-temporary impairments
$
(5,527
)
 
$
(13,395
)
 
$
(8,296
)
 
$
(13,395
)
 
$
(636
)
Non-credit impairment losses recorded in other comprehensive income
4,560

 
7,661

 
4,712

 
7,661

 
155

Net impairment losses recognized in earnings
$
(967
)
 
$
(5,734
)
 
$
(3,584
)
 
$
(5,734
)
 
$
(481
)
Schedule of Available-for-Sale Credit Losses on Fixed Maturities Held by the Company for Which a Portion of Other-than-Temporary Impairments were Recognized in Other Comprehensive Income (Loss)
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
 
For The Three Months Ended
June 30, 2016
 
For The Three Months Ended June 30, 2015
 
For The Six Months Ended June 30, 2016
 
February 1, 2015
to
June 30, 2015
 
January 1, 2015
to
January 31, 2015
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Beginning balance
$
2,619

 
$
—

 
$
22,761

 
$
—

 
$
15,463

Additions for newly impaired securities
964

 
4,472

 
3,056

 
4,472

 
—

Additions for previously impaired securities
—

 
—

 
525

 
—

 
221

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

 
—

 
(22,759
)
 
—

 
—

Reductions for previously impaired securities that were sold in the current period
(2,619
)
 
—

 
(2,619
)
 
—

 
—

Ending balance
$
964

 
$
4,472

 
$
964

 
$
4,472

 
$
15,684
Schedule of Investments' Gross Unrealized Losses and Fair Value of the Company's Investments that are Not Deemed to be Other-than-Temporarily Impaired
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 June 30, 2016 (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
$
192,301

 
$
(3,103
)
 
$
152,965

 
$
(6,150
)
 
$
345,266

 
$
(9,253
)
Commercial mortgage-backed securities
43,965

 
(283
)
 
194,550

 
(3,443
)
 
238,515

 
(3,726
)
Other asset-backed securities
90,316

 
(1,188
)
 
550,860

 
(34,867
)
 
641,176

 
(36,055
)
U.S. government-related securities
1,283

 
(5
)
 
57,372

 
(200
)
 
58,655

 
(205
)
Other government-related securities
—

 
—

 
—

 
—

 
—

 
—

States, municipalities, and political subdivisions
34,112

 
(274
)
 
718,798

 
(21,320
)
 
752,910

 
(21,594
)
Corporate securities
2,336,766

 
(128,908
)
 
13,476,384

 
(923,016
)
 
15,813,150

 
(1,051,924
)
Preferred stock
—

 
—

 
19,271

 
(1,667
)
 
19,271

 
(1,667
)
Equities
55,137

 
(1,225
)
 
87,602

 
(3,867
)
 
142,739

 
(5,092
)
 
$
2,753,880

 
$
(134,986
)
 
$
15,257,802

 
$
(994,530
)
 
$
18,011,682

 
$
(1,129,516
)
The chart below summarizes the fair value (proceeds) and the gains/losses realized on securities the Company sold that were in an unrealized gain position and an unrealized loss position.
 
 
Successor Company
 
Predecessor Company
 
For The Three Months Ended June 30, 2016
 
For The Three Months Ended June 30, 2015
 
For The Six Months Ended June 30, 2016
 
February 1, 2015
to
June 30, 2015
 
January 1, 2015
to
January 31, 2015
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Securities in an unrealized gain position:
 
 
 
 
 
 
 
 
 
Fair value (proceeds)
$
513,544

 
$
430,058

 
$
819,775

 
$
712,938

 
$
172,551

Gains realized
$
18,752

 
$
5,425

 
$
27,781

 
$
6,932

 
$
6,920

 
 
 
 
 
 
 
 
 
 
Securities in an unrealized loss
position(1):
 
 
 
 
 
 
 
 
 
Fair value (proceeds)
$
6,895

 
$
28,644

 
$
60,582

 
$
49,326

 
$
435

Losses realized(2)
$
(1,820
)
 
$
(2,075
)
 
$
(5,313
)
 
$
(3,209
)
 
$
(29
)
 
 
 
 
 
 
 
 
 
 
(1) The Company made the decision to exit these holdings in conjunction with its overall asset liability management process.
(2) The losses realized for the period of January 1, 2015 to January 31, 2015 (Predecessor Company), were immaterial to the Company.
Summary of Change in Unrealized Gains (Losses), Net of Income Tax, on Fixed Maturity and Equity Securities, Classified as Available-for-Sale
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
)
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
 
For The Three Months Ended
June 30, 2016
 
For The Three Months Ended June 30, 2015
 
For The Six Months Ended June 30, 2016
 
February 1, 2015
to
June 30, 2015
 
January 1, 2015
to
January 31, 2015
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Fixed maturities
$
845,933

 
$
(1,039,827
)
 
$
1,476,650

 
$
(1,383,066
)
 
$
669,160

Equity securities
9,509

 
(9,048
)
 
9,439

 
(7,537
)
 
12,172
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 June 30, 2016 (Successor Company) and December 31, 2015 (Successor Company), are as follows:
 
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
Total OTTI
Recognized
in OCI
Successor Company
 
 
 
 
 
As of June 30, 2016
 
 
 
 
 
 
 
(Dollars In Thousands)
Fixed maturities:
 
 

 
 

 
 

 
 

 
 

Securities issued by affiliates:
 
 
 
 
 
 
 
 
 
 
Red Mountain LLC
 
$
626,280

 
$
—

 
$
(22,879
)
 
$
603,401

 
$
—

Steel City LLC
 
2,153,000

 
97,387

 
—

 
2,250,387

 
—

 
 
$
2,779,280

 
$
97,387

 
$
(22,879
)
 
$
2,853,788

 
$
—

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

 
 

 
 

 
 

 
 

Securities issued by affiliates:
 
 
 
 
 
 
 
 
 
 
Red Mountain LLC
 
$
593,314

 
$
—

 
$
(78,314
)
 
$
515,000

 
$
—

 
 
$
593,314

 
$
—

 
$
(78,314
)
 
$
515,000

 
$
—