DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Realized Investments Gains and Losses

The following table sets forth realized investments gains and losses for the periods shown:

Realized investment gains (losses) - derivative financial instruments

	For The Three Months Ended June 30,						For The Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars In Thousands)
Derivatives related to VA contracts:
Interest rate futures	$	(11,280	)	$	1,552		$	(17,302	)	$	(15,340	)
Equity futures	2,559			(10,864		)	32,297			(17,292		)
Currency futures	(397		)	12,063			1,847			4,480
Equity options	(21,702		)	(38,216		)	(93,397		)	(26,200		)
Interest rate swaptions	—			—			—			(14		)
Interest rate swaps	117,934			(26,149		)	192,795			(89,859		)
Total return swaps	(8,545		)	(10,055		)	(48,572		)	(3,565		)
Embedded derivative - GLWB	(69,602		)	11,191			(102,989		)	32,664
Funds withheld derivative	18,771			38,853			80,548			30,897
Total derivatives related to VA contracts	27,738			(21,625		)	45,227			(84,229		)
Derivatives related to FIA contracts:
Embedded derivative	(24,819		)	(4,927		)	(63,633		)	6,403
Equity futures	431			(167		)	2			(328		)
Equity options	13,191			7,398			55,241			2,729
Total derivatives related to FIA contracts	(11,197		)	2,304			(8,390		)	8,804
Derivatives related to IUL contracts:
Embedded derivative	(11,286		)	(1,226		)	(24,656		)	8,658
Equity futures	85			—			256			136
Equity options	2,606			2,086			8,786			836
Total derivatives related to IUL contracts	(8,595		)	860			(15,614		)	9,630
Embedded derivative - Modco reinsurance treaties	(70,679		)	45,183			(155,677		)	127,841
Derivatives with PLC(1)	8,922			(9,696		)	7,269			1,847
Other derivatives	(1,455		)	34			(1,389		)	(7		)
Total realized gains (losses) - derivatives	$	(55,266	)	$	17,060		$	(128,574	)	$	63,886
(1) These derivatives include the Interest, YRT premium support, and portfolio maintenance agreements between certain of the Company’s subsidiaries and PLC.

Components of the Gain or Loss on Derivatives that Quality as a Cash Flow Hedging Relationship

The following table presents the components of the gain or loss on derivatives that qualify as a cash flow hedging relationship.

Gain (Loss) on Derivatives in Cash Flow Hedging 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)			(Effective Portion)			(Ineffective Portion)
				Benefits and settlement expenses			Realized investment gains (losses)
	(Dollars In Thousands)
For The Three Months Ended June 30, 2019
Foreign currency swaps	$	(1,733	)	$	(188	)	$	—
Interest rate swaps	(1,796		)	(148		)	—
Total	$	(3,529	)	$	(336	)	$	—
For The Six Months Ended June 30, 2019
Foreign currency swaps	$	(3,626	)	$	(394	)	$	—
Interest rate swaps	(2,391		)	(220		)	—
Total	$	(6,017	)	$	(614	)	$	—
For The Three Months Ended June 30, 2018
Foreign currency swaps	$	2,967		$	(205	)	$	—
Total	$	2,967		$	(205	)	$	—
For The Six Months Ended June 30, 2018
Foreign currency swaps	$	3,582		$	(318	)	$	—
Total	$	3,582		$	(318	)	$	—

Schedule of 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

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 condensed financial statements for the periods presented below:

	As of
	June 30, 2019				December 31, 2018
	Notional Amount		Fair Value		Notional Amount		Fair Value
	(Dollars In Thousands)
Other long-term investments
Derivatives not designated as hedging instruments:
Interest rate swaps	$	2,188,000	$	90,599	$	1,515,500	$	28,501
Total return swaps	132,044		1,065		138,070		3,971
Derivatives with PLC(1)	2,843,171		95,610		2,856,351		90,049
Embedded derivative - Modco reinsurance treaties	1,248,634		13,738		585,294		7,072
Embedded derivative - GLWB	1,198,236		34,235		1,919,861		54,221
Interest rate futures	393,518		8,703		286,208		10,302
Equity futures	101,064		639		12,633		483
Equity options	6,176,649		431,694		5,624,081		220,092
Other	157		173		157		136
	$	14,281,473	$	676,456	$	12,938,155	$	414,827
Other liabilities
Cash flow hedges:
Interest rate swaps	$	350,000	$	—	$	350,000	$	—
Foreign currency swaps	117,178		2,309		117,178		904
Derivatives not designated as hedging instruments:
Interest rate swaps	70,000		—		775,000		11,367
Total return swaps	361,607		1,112		768,177		23,054
Embedded derivative - Modco reinsurance treaties	2,287,547		188,853		1,795,287		32,828
Funds withheld derivative	1,915,424		91,118		1,992,562		95,142
Embedded derivative - GLWB	2,874,833		216,157		2,152,698		97,528
Embedded derivative - FIA	2,739,208		298,721		2,576,033		217,288
Embedded derivative - IUL	262,828		136,660		233,550		90,231
Interest rate futures	901,165		16,464		863,706		20,100
Equity futures	225,125		2,967		659,357		33,753
Currency futures	256,513		1,105		202,747		2,163
Equity options	4,008,015		198,159		4,199,687		34,178
Other	13,109		1,644		3,288		252
	$	16,382,552	$	1,155,269	$	16,689,270	$	658,788
(1) These derivatives include the Interest, YRT premium support, and portfolio maintenance agreements between certain of the Company’s subsidiaries and PLC.