DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Realized Investments Gains and Losses

The following table sets forth realized gains (losses) - derivatives for the periods shown:

Realized gains (losses) - derivative financial instruments

	For The Three Months Ended March 31,
	2020		2019
	(Dollars In Thousands)
Derivatives related to VA contracts:
Interest rate futures	$	858	$	(6,022)
Equity futures	30,652		29,738
Currency futures	12,162		2,244
Equity options	280,479		(71,695)
Interest rate swaps	409,515		74,861
Total return swaps	139,767		(40,027)
Embedded derivative - GLWB	(410,580)		(33,387)
Funds withheld derivative	(261,414)		61,777
Total derivatives related to VA contracts	201,439		17,489
Derivatives related to FIA contracts:
Embedded derivative	38,887		(38,814)
Equity futures	(8,152)		(429)
Equity options	(60,385)		—
Other derivatives	200		42,050
Total derivatives related to FIA contracts	(29,450)		2,807
Derivatives related to IUL contracts:
Embedded derivative	38		(13,370)
Equity futures	(2,439)		171
Equity options	(14,449)		6,180
Total derivatives related to IUL contracts	(16,850)		(7,019)
Embedded derivative - Modco reinsurance treaties	75,729		(84,998)
Derivatives with PLC(1)	(1,948)		(1,653)
Other derivatives	9,220		66
Total realized gains (losses) - derivatives	$	238,140	$	(73,308)
(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 Gains (Losses) Recognized in Income (Loss) on Derivatives
	(Effective Portion)		(Effective Portion)		(Ineffective Portion)
			Benefits and settlement expenses		Realized gains (losses) - investments/derivatives
	(Dollars In Thousands)
For The Three Months Ended March 31, 2020
Foreign currency swaps	$	(5,494)	$	(395)	$	—
Interest rate swaps	(375)		(809)		—
Total	$	(5,869)	$	(1,204)	$	—
For The Three Months Ended March 31, 2019
Foreign currency swaps	$	(1,893)	$	(207)	$	—
Interest rate swaps	(595)		(71)		—
Total	$	(2,488)	$	(278)	$	—

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
	March 31, 2020				December 31, 2019
	Notional Amount		Fair Value		Notional Amount		Fair Value
	(Dollars In Thousands)
Other long-term investments
Derivatives not designated as hedging instruments:
Interest rate swaps	$	2,328,000	$	219,853	$	2,228,000	$	98,655
Total return swaps	100,646		21,928		269,772		941
Derivatives with PLC(1)	2,858,603		109,359		2,830,889		115,379
Embedded derivative - Modco reinsurance treaties	304,016		4,961		1,280,189		31,926
Embedded derivative - GLWB	538,604		45,314		1,147,436		62,538
Embedded derivative - FIA	31,832		2,447		—		—
Interest rate futures	194,506		19,603		896,073		7,557
Equity futures	556,921		40,229		159,901		2,109
Currency futures	318,629		5,238		72,593		131
Equity options	7,241,869		512,807		6,685,670		676,257
	$	14,473,626	$	981,739	$	15,570,523	$	995,493
Other liabilities
Cash flow hedges:
Interest rate swaps	$	350,000	$	—	$	350,000	$	—
Foreign currency swaps	117,178		34,672		117,178		11,373
Derivatives not designated as hedging instruments:
Interest rate swaps	150,000		—		50,000		—
Total return swaps	491,104		59,275		579,675		3,229
Embedded derivative - Modco reinsurance treaties	3,253,457		126,240		2,263,685		231,516
Funds withheld derivative	1,831,520		228,017		1,845,649		70,583
Embedded derivative - GLWB	3,425,839		641,933		2,892,926		248,577
Embedded derivative - FIA	3,048,651		306,541		2,892,803		332,869
Embedded derivative - IUL	315,629		164,079		301,598		151,765
Interest rate futures	958,865		45,326		669,223		10,375
Equity futures	65,533		11,421		174,743		2,376
Currency futures	—		—		192,306		1,836
Equity options	5,156,443		54,617		4,827,714		429,434
Other	226,987		23,481		199,387		53,245
	$	19,391,206	$	1,695,602	$	17,356,887	$	1,547,178
(1) These derivatives include the Interest, YRT premium support, and portfolio maintenance agreements between certain of the Company’s subsidiaries and PLC.