DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED

12 Months Ended

Dec. 31, 2016

Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract]

DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED

DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED

Deferred policy acquisition costs

The balances and changes in DAC are as follows:

	Successor Company						Predecessor Company
	As of December 31, 2016			February 1, 2015 to December 31, 2015			January 1, 2015 to January 31, 2015
	(Dollars In Thousands)						(Dollars In Thousands)
Balance, beginning of period	$	291,497		$	—		$	2,653,065
Capitalization of commissions, sales, and issue expenses	330,302			306,237			22,820
Amortization	(49,179		)	(24,699		)	1,080
Change in unrealized investment gains and losses	4,065			9,959			(96,830		)
Balance, end of period	$	576,685		$	291,497		$	2,580,135

Value of Business Acquired

The balances and changes in VOBA are as follows:

	Successor Company						Predecessor Company
	As of December 31, 2016			February 1, 2015 to December 31, 2015			January 1, 2015 to January 31, 2015
	(Dollars In Thousands)						(Dollars In Thousands)
Balance, beginning of period	$	1,270,876		$	1,278,063		$	501,981
Acquisitions	285,092			—			—
Amortization	(101,119		)	(70,367		)	(5,895		)
Change in unrealized gains and losses	(7,010		)	69,226			(79,417		)
Other	—			(6,046		)	—
Balance, end of period	$	1,447,839		$	1,270,876		$	416,669

As of February 1, 2015, the existing DAC and VOBA balance was written off in conjunction with the Merger previously disclosed in Note 4, Dai-ichi Merger, and in accordance with ASC Topic 805 - Business Combinations.

Concurrently, a VOBA asset was created representing the actuarial estimated present value of future cash flows from the Company's insurance policies and investment contracts in-force on the date of the Merger.

Based on the balance recorded as of December 31, 2016 (Successor Company), the expected amortization of VOBA for the next five years is as follows:

	Expected
Years	Amortization
	(Dollars In Thousands)
2017	$	129,610
2018	123,455
2019	116,523
2020	102,166
2021	90,317