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OPERATING SEGMENTS
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
OPERATING SEGMENTS OPERATING SEGMENTS
The Company has several operating segments, each having a strategic focus. An operating segment is distinguished by products, channels of distribution, and/or other strategic distinctions. The Company periodically evaluates its operating segments and makes adjustments to its segment reporting as needed. A brief description of each segment follows.
In the first quarter of 2020, as a result of changes in the way the chief operating decision maker makes decisions about the allocation of resources and assesses the performance of the business, the Company combined two of its former six segments into one segment Retail Life and Annuity. These changes enable the Company to better serve the needs of its customer and to help achieve the goals of the organization.
Prior period amounts were adjusted retrospectively to reflect the change in the Company’s reportable segments.
•The Retail Life and Annuity segment primarily markets fixed UL, IUL, VUL, level premium term insurance (“traditional”), fixed annuity, and VA products on a national basis primarily through networks of independent insurance agents and brokers, broker-dealers, financial institutions, independent distribution organizations, and affinity groups.
•The Acquisitions segment focuses on acquiring, converting, and servicing policies and contracts acquired from other companies. The segment’s primary focus is on life insurance policies and annuity products that were sold to individuals. Additionally, this segment’s acquisition activity is predicated upon many factors, including available capital, operating capacity, potential return on capital, and market dynamics. Policies acquired through the Acquisitions segment are typically blocks of business where no new policies are being marketed, however, some recent acquisitions have included ongoing new business activities. Ongoing new product sales written by the Company from these acquisitions are included in the Retail Life and Annuity segment. As a result, earnings and account values are expected to decline as the result of lapses, deaths, and other terminations of coverage unless new acquisitions are made.
•The Stable Value Products segment sells fixed and floating rate funding agreements directly to the trustees of municipal bond proceeds, money market funds, bank trust departments, and other institutional investors. This segment also issues funding agreements to the FHLB, and markets GICs to 401(k) and other qualified retirement savings plans. The Company also has an unregistered funding agreement-backed notes program which provides for offers of notes to both domestic and international institutional investors.
•The Asset Protection segment markets extended service contracts, GAP products, credit life and disability insurance, and other specialized ancillary products to protect consumers’ investments in automobiles and recreational vehicles. GAP products are designed to cover the difference between the scheduled loan pay-off amount and an asset’s actual cash value in the case of a total loss. Each type of specialized ancillary product protects against damage or other loss to a particular aspect of the underlying asset.
•The Corporate and Other segment primarily consists of net investment income on assets supporting our equity capital, unallocated corporate overhead and expenses not attributable to the segments above. This segment
includes earnings from several non-strategic or runoff lines of business, various financing and investment related transactions, and the operations of several small subsidiaries.
The Company’s management and Board of Directors analyzes and assesses the operating performance of each segment using pre-tax adjusted operating income (loss) and after-tax adjusted operating income (loss). Consistent with GAAP accounting guidance for segment reporting, pre-tax adjusted operating income (loss) is the Company’s measure of segment performance. Pre-tax adjusted operating income (loss) is calculated by adjusting income (loss) before income tax, by excluding the following items:
•realized gains and losses on investments and derivatives,
•changes in the GLWB embedded derivatives exclusive of the portion attributable to the economic cost of the GLWB,
•actual GLWB incurred claims, and
•the amortization of DAC, VOBA, and certain policy liabilities that is impacted by the exclusion of these items.
The items excluded from adjusted operating income (loss) are important to understanding the overall results of operations. Pre-tax adjusted operating income (loss) and after-tax adjusted operating income (loss) are not substitutes for income before income taxes or net income (loss), respectively. These measures may not be comparable to similarly titled measures reported by other companies. The Company believes that pre-tax and after-tax adjusted operating income (loss) enhances management’s and the Board of Directors’ understanding of the ongoing operations, the underlying profitability of each segment, and helps facilitate the allocation of resources.
After-tax adjusted operating income (loss) is derived from pre-tax adjusted operating income (loss) with the inclusion of income tax expense or benefits associated with pre-tax adjusted operating income. Income tax expense or benefits is allocated to the items excluded from pre-tax adjusted operating income (loss) at the statutory federal income tax rate for the associated period. Income tax expense or benefits allocated to after-tax adjusted operating income (loss) can vary period to period based on changes in the Company’s effective income tax rate.
In determining the components of the pre-tax adjusted operating income (loss) for each segment, premiums and policy fees, other income, benefits and settlement expenses, and amortization of DAC and VOBA are attributed directly to each operating segment. Net investment income is allocated based on directly related assets required for transacting the business of that segment. Realized gains (losses) and other operating expenses are allocated to the segments in a manner that most appropriately reflects the operations of that segment. Investments and other assets are allocated based on statutory policy liabilities net of associated statutory policy assets, while DAC/VOBA and goodwill are shown in the segments to which they are attributable.
As of April 1, 2020, the Company refined its method of allocating the realized gains and losses associated with its derivative portfolios to the Acquisitions and Retail Life and Annuity operating segments. The impact of the change in allocation was not considered material to the operating segment results for the year ended December 31, 2020.
There were no significant intersegment transactions during the years ended December 31, 2020, 2019, and 2018.
The following tables present a summary of results and reconciles pre-tax adjusted operating income (loss) to consolidated income before income tax and net income:
For The Year Ended December 31,
 202020192018
 (Dollars In Thousands)
Revenues  
Retail Life and Annuity$2,567,305 $2,318,472 $2,045,971 
Acquisitions3,283,725 2,901,650 2,027,195 
Stable Value Products176,286 246,587 219,501 
Asset Protection275,405 290,655 355,501 
Corporate and Other(5,299)131,464 110,848 
Total revenues$6,297,422 $5,888,828 $4,759,016 
Pre-tax Adjusted Operating Income (Loss)   
Retail Life and Annuity$65,092 $118,881 $115,429 
Acquisitions406,799 346,825 282,715 
Stable Value Products89,610 93,183 102,328 
Asset Protection41,845 37,205 24,371 
Corporate and Other(242,999)(161,248)(156,722)
Pre-tax adjusted operating income360,347 434,846 368,121 
Realized gains (losses) and adjustments53,177 248,602 (120,533)
Income before income tax413,524 683,448 247,588 
Income tax expense (benefit)71,162 130,464 53,661 
Net income$342,362 $552,984 $193,927 
Pre-tax adjusted operating income$360,347 $434,846 $368,121 
Adjusted operating income tax (expense) benefit(59,995)(78,257)(78,973)
After-tax adjusted operating income300,352 356,589 289,148 
Realized gains (losses) and adjustments53,177 248,602 (120,533)
Income tax (expense) benefit on adjustments(11,167)(52,207)25,312 
Net income$342,362 $552,984 $193,927 
Realized gains (losses) and adjustments:
Derivative financial instruments$8,679 $(131,459)$79,097 
All other investments(39,806)308,545 (253,000)
Less: related amortization(1)
(30,362)(23,021)(11,856)
Less: VA GLWB economic cost(53,942)(48,495)(41,514)
Realized gains (losses) and adjustments$53,177 $248,602 $(120,533)
(1)Includes amortization of DAC/VOBA and benefits and settlement expenses that are impacted by realized gains (losses).
For The Year Ended December 31,
 202020192018
(Dollars In Thousands)
Net Investment Income   
Retail Life and Annuity$1,008,016 $939,304 $888,079 
Acquisitions1,648,122 1,532,605 1,108,218 
Stable Value Products230,217 243,775 217,778 
Asset Protection23,379 28,291 25,070 
Corporate and Other(26,771)74,855 99,757 
Total net investment income$2,882,963 $2,818,830 $2,338,902 
Amortization of DAC and VOBA   
Retail Life and Annuity$116,021 $98,947 $141,191 
Acquisitions23,445 10,693 18,690 
Stable Value Products3,322 3,382 3,201 
Asset Protection65,684 62,631 62,984 
Corporate and Other— — — 
Total amortization of DAC and VOBA$208,472 $175,653 $226,066 

Operating Segments
As of December 31, 2020
 (Dollars In Thousands)
Retail Life and AnnuityAcquisitionsStable Value
Products
Investments and other assets$40,689,134 $55,628,003 $5,927,866 
DAC and VOBA2,479,781 761,475 8,336 
Other intangibles367,144 32,948 6,056 
Goodwill558,501 23,862 113,924 
Total assets$44,094,560 $56,446,288 $6,056,182 

Asset
Protection		Corporate
and Other		Total
Consolidated
Investments and other assets$880,738 $18,541,628 $121,667,369 
DAC and VOBA170,092 — 3,419,684 
Other intangibles101,349 32,873 540,370 
Goodwill129,224 — 825,511 
Total assets$1,281,403 $18,574,501 $126,452,934 
Operating Segment Assets
As of December 31, 2019
 (Dollars In Thousands)
Retail Life and AnnuityAcquisitionsStable Value
Products
Investments and other assets$37,448,239 $54,074,450 $5,317,885 
DAC and VOBA2,416,616 924,090 5,221 
Other intangibles401,178 36,321 6,722 
Goodwill558,501 23,862 113,924 
Total assets$40,824,534 $55,058,723 $5,443,752 

Asset
Protection		Corporate
and Other		Total
Consolidated
Investments and other assets$878,386 $17,830,217 $115,549,177 
DAC and VOBA173,628 — 3,519,555 
Other intangibles112,032 27,173 583,426 
Goodwill129,224 — 825,511 
Total assets$1,293,270 $17,857,390 $120,477,669