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 10, Debt and Other Obligations for details of the Company’s repurchase agreement programs.

Collateral received includes both cash and non-cash collateral. Cash collateral received by the Company is recorded on the consolidated condensed balance sheet as “cash”, with a corresponding amount recorded in “other liabilities” to represent the Company’s obligation to return the collateral. Non-cash collateral received by the Company is not recognized on the consolidated condensed balance sheet unless the Company exercises its right to sell or re-pledge the underlying asset. As of June 30, 2019 and December 31, 2018, the fair value of non-cash collateral received was $30.4 million and $45.0 million, respectively.

The tables below present the derivative instruments by assets and liabilities for the Company as of June 30, 2019.



	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
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position				Financial Instruments		Collateral Received		Net Amount
	(Dollars In Thousands)
Offsetting of Assets
Derivatives:
Free-Standing derivatives	$	532,700	$	—	$	532,700	$	210,744	$	214,952	$	107,004
Total derivatives, subject to a master netting arrangement or similar arrangement	532,700		—		532,700		210,744		214,952		107,004
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	13,738		—		13,738		—		—		13,738
Embedded derivative - GLWB	34,235		—		34,235		—		—		34,235
Derivatives with PLC	95,610		—		95,610		—		—		95,610
Other	173		—		173		—		—		173
Total derivatives, not subject to a master netting arrangement or similar arrangement	143,756		—		143,756		—		—		143,756
Total derivatives	676,456		—		676,456		210,744		214,952		250,760
Total Assets	$	676,456	$	—	$	676,456	$	210,744	$	214,952	$	250,760



	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
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position				Financial Instruments		Collateral Posted		Net Amount
	(Dollars In Thousands)
Offsetting of Liabilities
Derivatives:
Free-Standing derivatives	$	222,116	$	—	$	222,116	$	210,744	$	11,215	$	157
Total derivatives, subject to a master netting arrangement or similar arrangement	222,116		—		222,116		210,744		11,215		157
Derivatives, not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	188,853		—		188,853		—		—		188,853
Funds withheld derivative	91,118		—		91,118		—		—		91,118
Embedded derivative - GLWB	216,157		—		216,157		—		—		216,157
Embedded derivative - FIA	298,721		—		298,721		—		—		298,721
Embedded derivative - IUL	136,660		—		136,660		—		—		136,660
Other	1,644		—		1,644		—		—		1,644
Total derivatives, not subject to a master netting arrangement or similar arrangement	933,153		—		933,153		—		—		933,153
Total derivatives	1,155,269		—		1,155,269		210,744		11,215		933,310
Repurchase agreements⁽¹⁾	60,000		—		60,000		—		—		60,000
Total Liabilities	$	1,215,269	$	—	$	1,215,269	$	210,744	$	11,215	$	993,310

(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, 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
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position				Financial Instruments		Collateral Received		Net Amount
	(Dollars In Thousands)
Offsetting of Assets
Derivatives:
Free-Standing derivatives	$	263,349	$	—	$	263,349	$	70,322	$	99,199	$	93,828
Total derivatives, subject to a master netting arrangement or similar arrangement	263,349		—		263,349		70,322		99,199		93,828
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	7,072		—		7,072		—		—		7,072
Embedded derivative - GLWB	54,221		—		54,221		—		—		54,221
Derivatives with PLC	90,049		—		90,049		—		—		90,049
Other	136		—		136		—		—		136
Total derivatives, not subject to a master netting arrangement or similar arrangement	151,478		—		151,478		—		—		151,478
Total derivatives	414,827		—		414,827		70,322		99,199		245,306
Total Assets	$	414,827	$	—	$	414,827	$	70,322	$	99,199	$	245,306



	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
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position				Financial Instruments		Collateral Posted		Net Amount
	(Dollars In Thousands)
Offsetting of Liabilities
Derivatives:
Free-Standing derivatives	$	125,519	$	—	$	125,519	$	70,322	$	47,856	$	7,341
Total derivatives, subject to a master netting arrangement or similar arrangement	125,519		—		125,519		70,322		47,856		7,341
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	32,828		—		32,828		—		—		32,828
Funds withheld derivative	95,142		—		95,142		—		—		95,142
Embedded derivative - GLWB	97,528		—		97,528		—		—		97,528
Embedded derivative - FIA	217,288		—		217,288		—		—		217,288
Embedded derivative - IUL	90,231		—		90,231		—		—		90,231
Other	252		—		252		—		—		252
Total derivatives, not subject to a master netting arrangement or similar arrangement	533,269		—		533,269		—		—		533,269
Total derivatives	658,788		—		658,788		70,322		47,856		540,610
Repurchase agreements⁽¹⁾	418,090		—		418,090		—		—		418,090
Total Liabilities	$	1,076,878	$	—	$	1,076,878	$	70,322	$	47,856	$	958,700

(1) Borrowings under repurchase agreements are for a term less than 90 days.