OFFSETTING OF ASSETS AND LIABILITIES

6 Months Ended

Jun. 30, 2018

Offsetting [Abstract]

OFFSETTING OF ASSETS AND LIABILITIES

OFFSETTING OF ASSETS AND LIABILITIES

Certain of the Company’s derivative instruments are subject to enforceable master netting arrangements that provide for the net settlement of all derivative contracts between the Company and a counterparty in the event of default or upon the occurrence of certain termination events. Collateral support agreements associated with each master netting arrangement provide that the Company will receive or pledge financial collateral in the event either minimum thresholds, or in certain cases ratings levels, have been reached. Additionally, certain of the Company’s repurchase agreements provide for net settlement on termination of the agreement. Refer to Note 11, Debt and Other Obligations for details of the Company’s repurchase agreement programs. 

The tables below present the derivative instruments by assets and liabilities for the Company as of June 30, 2018.

	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
							Financial Instruments		Collateral Received		Net Amount
	(Dollars In Thousands)
Offsetting of Assets
Derivatives:
Free-Standing derivatives	$	379,860	$	—	$	379,860	$	182,942	$	74,202	$	122,716
Total derivatives, subject to a master netting arrangement or similar arrangement	379,860		—		379,860		182,942		74,202		122,716
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	1,551		—		1,551		—		—		1,551
Embedded derivative - GLWB	76,245		—		76,245		—		—		76,245
Derivatives with PLC	92,798		—		92,798		—		—		92,798
Other	193		—		193		—		—		193
Total derivatives, not subject to a master netting arrangement or similar arrangement	170,787		—		170,787		—		—		170,787
Total derivatives	550,647		—		550,647		182,942		74,202		293,503
Total Assets	$	550,647	$	—	$	550,647	$	182,942	$	74,202	$	293,503

	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
							Financial Instruments		Collateral Posted		Net Amount
	(Dollars In Thousands)
Offsetting of Liabilities
Derivatives:
Free-Standing derivatives	$	186,348	$	—	$	186,348	$	182,942	$	3,406	$	—
Total derivatives, subject to a master netting arrangement or similar arrangement	186,348		—		186,348		182,942		3,406		—
Derivatives, not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	76,145		—		76,145		—		—		76,145
Funds withheld derivative	67,688		—		67,688		—		—		67,688
Embedded derivative - GLWB	59,128		—		59,128		—		—		59,128
Embedded derivative - FIA	238,569		—		238,569		—		—		238,569
Embedded derivative - IUL	83,166		—		83,166		—		—		83,166
Total derivatives, not subject to a master netting arrangement or similar arrangement	524,696		—		524,696		—		—		524,696
Total derivatives	711,044		—		711,044		182,942		3,406		524,696
Repurchase agreements(1)	39,322		—		39,322		—		—		39,322
Total Liabilities	$	750,366	$	—	$	750,366	$	182,942	$	3,406	$	564,018
(1) Borrowings under repurchase agreements are for a term less than 90 days.

The tables below present the derivative instruments by assets and liabilities for the Company as of December 31, 2017.

	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
							Financial Instruments		Collateral Received		Net Amount
	(Dollars In Thousands)
Offsetting of Assets
Derivatives:
Free-Standing derivatives	$	468,871	$	—	$	468,871	$	242,105	$	108,830	$	117,936
Total derivatives, subject to a master netting arrangement or similar arrangement	468,871		—		468,871		242,105		108,830		117,936
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	1,009		—		1,009		—		—		1,009
Embedded derivative - GLWB	67,879		—		67,879		—		—		67,879
Derivatives with PLC	91,578		—		91,578		—		—		91,578
Other	200		—		200		—		—		200
Total derivatives, not subject to a master netting arrangement or similar arrangement	160,666		—		160,666		—		—		160,666
Total derivatives	629,537		—		629,537		242,105		108,830		278,602
Total Assets	$	629,537	$	—	$	629,537	$	242,105	$	108,830	$	278,602

	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
							Financial Instruments		Collateral Posted		Net Amount
	(Dollars In Thousands)
Offsetting of Liabilities
Derivatives:
Free-Standing derivatives	$	246,682	$	—	$	246,682	$	242,105	$	4,577	$	—
Total derivatives, subject to a master netting arrangement or similar arrangement	246,682		—		246,682		242,105		4,577		—
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	215,247		—		215,247		—		—		215,247
Funds withheld derivative	61,729		—		61,729		—		—		61,729
Embedded derivative - GLWB	83,427		—		83,427		—		—		83,427
Embedded derivative - FIA	218,676		—		218,676		—		—		218,676
Embedded derivative - IUL	80,212		—		80,212		—		—		80,212
Total derivatives, not subject to a master netting arrangement or similar arrangement	659,291		—		659,291		—		—		659,291
Total derivatives	905,973		—		905,973		242,105		4,577		659,291
Repurchase agreements(1)	885,000		—		885,000		—		—		885,000
Total Liabilities	$	1,790,973	$	—	$	1,790,973	$	242,105	$	4,577	$	1,544,291
(1) Borrowings under repurchase agreements are for a term less than 90 days.