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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of realized investment gains (losses) - derivative financial instruments
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 Year Ended December 31, 2016
 
February 1, 2015
to
December 31, 2015
 
January 1, 2015
to
January 31, 2015
 
For The Year Ended December 31, 2014
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Derivatives related to variable annuity contracts:
 

 
 
 
 

 
 

Interest rate futures - VA
$
(3,450
)
 
$
(14,818
)
 
$
1,413

 
$
27,801

Equity futures - VA
(106,431
)
 
(5,033
)
 
9,221

 
(26,104
)
Currency futures - VA
33,836

 
7,169

 
7,778

 
14,433

Variance swaps - VA
—

 
—

 
—

 
(744
)
Equity options - VA
(60,962
)
 
(27,733
)
 
3,047

 
(41,216
)
Interest rate swaptions - VA
(1,161
)
 
(13,354
)
 
9,268

 
(22,280
)
Interest rate swaps - VA
20,420

 
(85,942
)
 
122,710

 
214,164

Embedded derivative - GLWB
13,306

 
6,512

 
(68,503
)
 
(119,844
)
Funds withheld derivative
115,540

 
30,117

 
(9,073
)
 
47,792

Total derivatives related to VA contracts
11,098

 
(103,082
)
 
75,861

 
94,002

Derivatives related to FIA contracts:
 

 
 

 
 

 
 

Embedded derivative - FIA
(16,494
)
 
(738
)
 
1,769

 
(16,932
)
Equity futures - FIA
4,248

 
(355
)
 
(184
)
 
870

Volatility futures - FIA
—

 
5

 
—

 
20

Equity options - FIA
8,149

 
1,211

 
(2,617
)
 
9,906

Total derivatives related to FIA contracts
(4,097
)
 
123

 
(1,032
)
 
(6,136
)
Derivatives related to IUL contracts:
 

 
 

 
 

 
 

Embedded derivative - IUL
9,529

 
(614
)
 
(486
)
 
(8
)
Equity futures - IUL
129

 
144

 
3

 
15

Equity options - IUL
3,477

 
(540
)
 
(115
)
 
150

Total derivatives related to IUL contracts
13,135

 
(1,010
)
 
(598
)
 
157

Embedded derivative - Modco reinsurance treaties
390

 
166,092

 
(68,026
)
 
(105,276
)
Interest rate swaps
—

 
—

 
—

 
—

Derivatives with PLC(1)
29,289

 
(3,778
)
 
15,863

 
4,085

Other derivatives
(25
)
 
91

 
(37
)
 
(324
)
Total realized gains (losses) - derivatives
$
49,790

 
$
58,436

 
$
22,031

 
$
(13,492
)
(1)
These derivatives include an interest support, YRT premium support, and portfolio maintenance agreements between certain of the Company’s subsidiaries and PLC.
Schedule of 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 Year Ended December 31, 2016
 
February 1, 2015
to
December 31, 2015
 
January 1, 2015
to
January 31, 2015
 
For The Year Ended December 31, 2014
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Modco trading portfolio(1)
$
67,583

 
$
(167,359
)
 
$
73,062

 
$
142,016

(1)
The Company elected to include the use of alternate disclosures for trading activities.
Schedule of gain (loss) on derivatives in cash flow hedging relationship
The following tables present the components of the gain or loss on derivatives that qualify as a cash flow hedging relationship:
Gain (Loss) on Derivatives in Cash Flow 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)
 
(Ineffective Portion)
 
 
Benefits and settlement
 expenses
 
Realized investment
gains (losses)
 
(Effective Portion)
 
 
 
(Dollars In Thousands)
Successor Company
 
 
 
 
 
For The Year Ended December 31, 2016
 
 
 
 
 
Foreign Currency Swaps
$
1,058

 
$
(60
)
 
$
—

Total
$
1,058

 
$
(60
)
 
$
—

 
 
 
 
 
 
Successor Company
 
 
 
 
 
February 1, 2015 to December 31, 2015
 

 
 

 
 

Inflation
$
(131
)
 
$
(131
)
 
$
73

Total
$
(131
)
 
$
(131
)
 
$
73

 
 
 
 
 
 
 
 
 
 
 
 
Predecessor Company
 
 
 
 
 
January 1, 2015 to January 31, 2015
 

 
 

 
 

Inflation
$
13

 
$
(36
)
 
$
(7
)
Total
$
13

 
$
(36
)
 
$
(7
)
 
 
 
 
 
 
Predecessor Company
 
 
 
 
 
For The Year Ended December 31, 2014
 

 
 

 
 

Inflation
$
(4
)
 
$
(1,777
)
 
$
(223
)
Total
$
(4
)
 
$
(1,777
)
 
$
(223
)
Notional amounts and fair values of derivative financial instruments
The table below presents 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 for the periods presented below:
 
Successor Company
 
As of December 31,
 
2016
 
2015
 
Notional
Amount
 
Fair
Value
 
Notional
Amount
 
Fair
Value
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Other long-term investments
 
 
 
 
 
 
 
Cash flow hedges:
 
 
 
 
 
 
 
Foreign currency swaps
$
117,178

 
$
132

 
$
—

 
$
—

Derivatives not designated as hedging instruments:
 

 
 

 
 

 
 

Interest rate swaps
1,135,000

 
71,644

 
1,435,000

 
66,408

Derivatives with PLC(1)
2,808,807

 
48,878

 
1,619,200

 
18,161

Embedded derivative - Modco reinsurance treaties
64,123

 
2,573

 
64,593

 
1,215

Embedded derivative - GLWB
2,045,529

 
64,064

 
1,723,081

 
49,007

Interest rate futures
102,587

 
894

 
282,373

 
1,537

Equity futures
654,113

 
5,805

 
262,485

 
1,275

Currency futures
340,058

 
7,883

 
226,936

 
2,499

Equity options
3,944,444

 
328,908

 
2,198,340

 
179,458

Interest rate swaptions
225,000

 
2,503

 
225,000

 
3,663

Other
212

 
149

 
242

 
347

 
$
11,437,051

 
$
533,433

 
$
8,037,250

 
$
323,570

Other liabilities
 

 
 

 
 

 
 

Cash flow hedges:
 

 
 

 
 

 
 

Inflation
$
—

 
$
—

 
$
—

 
$
—

Derivatives not designated as hedging instruments:
 

 
 

 
 

 
 

Interest rate swaps
575,000

 
10,208

 
475,000

 
16,579

Embedded derivative - Modco reinsurance treaties
2,450,692

 
141,301

 
2,473,427

 
178,362

Funds withheld derivative
1,557,237

 
91,267

 
1,149,664

 
102,378

Embedded derivative - GLWB
1,849,400

 
71,082

 
1,834,308

 
67,528

Embedded derivative - FIA
1,496,346

 
147,368

 
1,110,790

 
100,329

Embedded derivative - IUL
103,838

 
46,051

 
57,760

 
29,629

Interest rate futures
993,842

 
6,611

 
793,763

 
1,539

Equity futures
102,667

 
2,907

 
233,412

 
2,599

Currency futures
—

 
—

 
46,692

 
1,115

Equity options
2,590,160

 
157,253

 
1,205,204

 
22,167

 
$
11,719,182

 
$
674,048

 
$
9,380,020

 
$
522,225

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