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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2017
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, 2017
 
For The Year Ended December 31, 2016
 
February 1, 2015
to
December 31, 2015
 
January 1, 2015
to
January 31, 2015
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Derivatives related to VA contracts:
 

 
 
 
 
 
 

Interest rate futures - VA
$
26,015

 
$
(3,450
)
 
$
(14,818
)
 
$
1,413

Equity futures - VA
(91,776
)
 
(106,431
)
 
(5,033
)
 
9,221

Currency futures - VA
(23,176
)
 
33,836

 
7,169

 
7,778

Equity options - VA
(94,791
)
 
(60,962
)
 
(27,733
)
 
3,047

Interest rate swaptions - VA
(2,490
)
 
(1,161
)
 
(13,354
)
 
9,268

Interest rate swaps - VA
27,981

 
20,420

 
(85,942
)
 
122,710

Total return swaps - VA
(32,240
)
 
—

 
—

 
—

Embedded derivative - GLWB
(8,526
)
 
13,306

 
6,512

 
(68,503
)
Funds withheld derivative
138,228

 
115,540

 
30,117

 
(9,073
)
Total derivatives related to VA contracts
(60,775
)
 
11,098

 
(103,082
)
 
75,861

Derivatives related to FIA contracts:
 

 
 
 
 

 
 

Embedded derivative - FIA
(55,878
)
 
(16,494
)
 
(738
)
 
1,769

Equity futures - FIA
642

 
4,248

 
(355
)
 
(184
)
Volatility futures - FIA
—

 
—

 
5

 
—

Equity options - FIA
44,585

 
8,149

 
1,211

 
(2,617
)
Total derivatives related to FIA contracts
(10,651
)
 
(4,097
)
 
123

 
(1,032
)
Derivatives related to IUL contracts:
 

 
 
 
 

 
 

Embedded derivative - IUL
(14,117
)
 
9,529

 
(614
)
 
(486
)
Equity futures - IUL
(818
)
 
129

 
144

 
3

Equity options - IUL
9,580

 
3,477

 
(540
)
 
(115
)
Total derivatives related to IUL contracts
(5,355
)
 
13,135

 
(1,010
)
 
(598
)
Embedded derivative - Modco reinsurance treaties
(103,009
)
 
390

 
166,092

 
(68,026
)
Derivatives with PLC(1)
42,699

 
29,289

 
(3,778
)
 
15,863

Other derivatives
50

 
(25
)
 
91

 
(37
)
Total realized gains (losses) - derivatives
$
(137,041
)
 
$
49,790

 
$
58,436

 
$
22,031

(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 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, 2017
 
 
 
 
 
Foreign Currency Swaps
$
(867
)
 
$
(694
)
 
$
—

Total
$
(867
)
 
$
(694
)
 
$
—

 
 
 
 
 
 
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
)
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,
 
2017
 
2016
 
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

 
$
6,016

 
$
117,178

 
$
132

Derivatives not designated as hedging instruments:
 

 
 

 
 

 
 

Interest rate swaps
1,265,000

 
55,411

 
1,135,000

 
71,644

Total return swaps
190,938

 
135

 
—

 
—

Derivatives with PLC(1)
2,810,469

 
91,578

 
2,808,807

 
48,878

Embedded derivative - Modco reinsurance treaties
64,472

 
1,009

 
64,123

 
2,573

Embedded derivative - GLWB
2,116,935

 
67,879

 
2,045,529

 
64,064

Interest rate futures
1,071,870

 
3,178

 
102,587

 
894

Equity futures
62,266

 
154

 
654,113

 
5,805

Currency futures
1,117

 
2

 
340,058

 
7,883

Equity options
4,436,467

 
403,961

 
3,944,444

 
328,908

Interest rate swaptions
225,000

 
14

 
225,000

 
2,503

Other
157

 
200

 
212

 
149

 
$
12,361,869

 
$
629,537

 
$
11,437,051

 
$
533,433

Other liabilities
 

 
 

 
 

 
 

Derivatives not designated as hedging instruments:
 

 
 

 
 

 
 

Interest rate swaps
$
597,500

 
$
2,960

 
$
575,000

 
$
10,208

Total return swaps
243,388

 
318

 
—

 
—

Embedded derivative - Modco reinsurance treaties
2,390,539

 
215,247

 
2,450,692

 
141,301

Funds withheld derivative
1,502,726

 
61,729

 
1,557,237

 
91,267

Embedded derivative - GLWB
1,939,320

 
83,427

 
1,849,400

 
71,082

Embedded derivative - FIA
1,951,650

 
218,676

 
1,496,346

 
147,368

Embedded derivative - IUL
168,349

 
80,212

 
103,838

 
46,051

Interest rate futures
230,404

 
917

 
993,842

 
6,611

Equity futures
318,795

 
2,593

 
102,667

 
2,907

Currency futures
255,248

 
2,087

 
—

 
—

Equity options
3,112,812

 
237,807

 
2,590,160

 
157,253

 
$
12,710,731

 
$
905,973

 
$
11,719,182

 
$
674,048

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